Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1630 - AT - Income TaxPenalty u/s 271(1)(c) - income estimated at a higher percentage than what is disclosed by the assessee - assessee offered the income @ 10.75% on the receipt from extra work performed by the assessee in respect of bungalows sold by it but CIT(A) estimated the income @ 25% of the receipt which is upheld by the ITAT - Held that:- As decided in Commissioner of Income-tax Versus Whitelene Chemicals [2013 (8) TMI 144 - GUJARAT HIGH COURT] merely because account books of assessee were rejected and that profit was estimated on the basis of fair gross profit ratio, no penalty can be imposed. In this case finally the income is assessed by estimating the higher net profit ratio. No additional material has been brought on record by the Revenue that actual income of the assessee was 25% and not 10.75%. The assessee has given the explanation that the extra work is done by the builder as service to the buyer of the bungalows. The extra work is not done with the profit motive and usually, it is done either on no profit or no loss basis or on negligible profit. The assessee has already disclosed reasonable profit which is 10.75%. The explanation of the assessee is plausible and reasonable. - Decided in favour of assessee.
|