Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 528 - HC - Income TaxPenalty under Section 271(1)(c) - Estimation of net profit for purpose of deduction under Section 80IB read with Section 80IA[10]from 45.39% to 40% - Held that:- The levy of penalty by the Assessing Officer was on unjustified grounds and the Tribunal has rightly allowed the appeal filed by the assessee. The Assessing Officer did not give any finding that inaccurate particulars were furnished by the assessee. It appears that the Assessing Officer has compared the profit estimates of different firms in the same line of business and arrived at the conclusion that the assessee had shown better net profit for claiming deductions which are not permissible under the law. Assessing Officer could not point out any cogent irregularity in the books of accounts which have been audited so as to arrive at the conclusion that the net profits were altered. It is improper to arrive at any such conclusion merely on the basis of comparison, presumption and assumption. The Assessing Officer is wrong in estimating the profit of the assessee at 40% basing the same on the profits of other firms in the same line of business when there is no concrete proof about the errors or irregularities in the books of accounts. We find that the Tribunal has rightly directed the Assessing Officer to take into consideration the net profit shown by the assessee and recalculate the deduction u/s 80IB of the Act. - Decided in favour of the assessee.
|