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2016 (7) TMI 966 - HC - Income TaxRejection of books of accounts - Held that:- It will not be out of place to mention here that the assessee is a manufacturing unit and it has to pay the excise duty. It is the specific contention of the assessee that the books of accounts maintained by it are tallying and the excise duty is paid on that basis. The stock register is not tallying with the other books of account only because some of the items were not deleted from the stock register. Taking into account the decision of this Court, not maintaining the day-today stock register is not a ground to reject the books of account. The question posed for our consideration is answered in favour of the assessee and it is held that the Tribunal has erred in upholding the action of the Respondent in rejecting the books of accounts of the Assessee under Section 145 (2) of the Act and further erred in confirming the part of the addition on estimated basis against the revenue - Decided in favour of assessee Penalty 271(1)(c) - Held that:- When the Tribunal found that there was neither concealment of income on the part of the assessee nor there was furnishing of inaccurate particulars, but the disallowance was made only on the ground of estimation, no case was made out for levying of penalty and therefore the Tribunal concurred with the findings of the CIT (Appeals). Tribunal has erred in confirming the penalty under section 271 (1) (c) of the Act - Decided in favour of assessee
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