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2014 (5) TMI 272 - AT - Income TaxConfirmation of penalty u/s 271(1)(c) of the Act - Estimated Addition made – Comparison between expenditure debited to P&L account of current year with preceding year – Held that:- The CIT(A) rightly held that the addition was made by the AO on the basis of estimation but it was based on figures worked out in each head of expenditure for the two years - The production ratio had been computed on the basis of production figure disclosed by the assessee - the addition remains estimated - The books had been audited and all the particulars of income as well as expenditure have been disclosed by the assessee - Bogus purchases were claimed and purchases were not shown in sales or stock - Addition was made in GP - no such findings were given by the AO that there was specific discrepancy found in purchase and sale - no penalty u/s 271(1)(c) can be imposed upon the basis of estimated addition – Decided in favour of assessee.
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