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2016 (10) TMI 596 - AT - Income TaxLevy of penalty u/s 271(1)(c) - assessment based on estimated income - professional entry operator - as per assessee he has accepted the estimated income to buy peace and avoid protracted litigation - Held that:- The addition on which penalty has been imposed is not based on estimate but the same was offered by the assessee itself based on another case of Nexus Software Ltd. There being no element of estimate, this contention of the assessee carries no merit. Nothing emerges from record that the assessee agreed to the addition to buy peace of mind and to avoid litigation. The record is full of facts that nature of material was available. Plethora of evidence was available to hold that assessee was a professional entry operator, the fact which is accepted by the assessee. Ld. AO and CIT(A) have been reasonable in imposing penalty to the tune of 100%, whereas they could have imposed at the rate of 300% of the tax sought to be evaded by such deplorable accommodation entry racket. Thus no infirmity in the orders of the authorities below confirming the penalty which are upheld - Decided against assessee.
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