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2014 (2) TMI 21 - HC - Income TaxPenalty u/s 271(1)(c) - Held that:- The addition has been made by AO purely on estimate basis - It is a pure guess work as it was not based on any fact - On such guess work or estimation, no penalty under section 271(1)(c) of the Act is leviable - For imposing penalty under section 271(1)(c) of the Act, the Assessing Officer has to clearly prove the conduct of the assessee - The assessee offered an explanation, which could not be termed as not bona fide - In the absence of any corroborative evidence, it cannot be said that there was concealment of income - Relying upon the decision in CIT v. Aero Traders P. Ltd. [2010 (1) TMI 32 - DELHI HIGH COURT] - Penalty is not leviable when income was based on estimated profit and substantially reduced by the Tribunal - Decided against Revenue.
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