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2016 (7) TMI 1526 - AT - Income TaxPenalty u/s 271(1)(c) - rejection of books of accounts - HELD THAT:- We find that in the present case the books of accounts were rejected and the income of the assessee was estimated by applying a percentage and therefore, as held by various orders of the Tribunal and High Courts the penalty u/s 271(1) (c) was not imposable in the present case. See SUBHASH TRADING COMPANY [1995 (11) TMI 37 - GUJARAT HIGH COURT] as held in the absence of any other material which might reflect on the conduct of the assessee about a deliberate attempt to maintain false books of account, on a preponderance of probabilities, no other conclusion could be reached than that the failure to return the correct income was no on account of any fraud or gross or willful neglect on the part of the assessee. As decided in AARKAY SAREE MUSEUM [1990 (8) TMI 97 - BOMBAY HIGH COURT] ribunal had rightly held that merely because certain additions were made in the trading account by the Assessing officer, it did not necessarily follow that assessee had concealed its income the cancellation of penalty was valid. - Decided in favour of assessee.
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