Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1794 - AT - Income TaxPenalty u/s 271(1)(c) - trading additions - addition u/s 68 - HELD THAT:- Tribunal in quantum proceedings has confirmed the trading additions by estimating the net Profit @ 10% subject to interest and depreciation holding that once the books of accounts of the assessee are rejected, the AO is required to make an estimation of profits and such estimation though involves some guess work, the AO is not empowered to arrive at unrealistic figure of estimation. Looking at the past history of the assessee where the additions were again sustained on estimation basis @ 8% of N.P rate, N.P rate of 10% was determined. In the context of levy of penalty on such estimated additions, the ld AR has drawn our reference to earlier decision of the Coordinate Bench for AY 2005-06 where penalty was deleted on estimated additions - case of Mahendra Singh Khedia [2012 (3) TMI 568 - RAJASTHAN HIGH COURT] also supports the case of the assessee. In light of above, there is no basis for levy of penalty in respect of trading additions which have been sustained on an estimation basis. Additions under section 68, since the entire additions have been deleted in the quantum proceedings by the Coordinate Bench, corresponding levy of penalty cannot be sustained. - Decided in favour of assessee
|