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2016 (12) TMI 679 - AT - Income TaxPenalty levied u/s. 271(1)(c) - under valuation of stock - income declared at the time of survey - Held that:- No doubt additions have been made by the AO based on the disclosure made by the assessee during the course of survey operations u/s 133A of the Act. There was no allegation by the assessee hat disclosure was made by him out of duress and coercion by the department. No doubt, addition was on account of undervaluation of closing stock and it is no body case there is any difference in quantitative closing stock. The submission of the assessee that the addition was offered to tax on account of change in the method of closing stock from LIFO and FIFO at the insistence of the AO, is not borne out of record. Therefore, it follows that the difference in valuation arisen on account of adopting wrong method of valuation of closing stock which amounts to concealment of particulars of income. Therefore, in our considered opinion, the AO was justified in levying penalty u/s 271(1)(c) of the Act. The reasoning of the CIT(A) that penalty cannot be levied in estimate basis, cannot be applied to the facts of the present case as no addition was made on estimate basis and the CIT(A) has allowed appeal on wrong premise. - Decided against assessee Maintainability of the present cross-objections - Held that:- Having regard to plain provisions of statute, in absence of nonadjudication of ground by the CIT(A), assessee can come only by way of appeal before the Tribunal, not by way of cross objections. In the present case, the CIT(A) had no occasion to deal with the issue raised by way of cross objections, as the assessee never contested this issue either before the AO or before the CIT(A). The cross objections do not widen the scope of subject matter of appeal. Therefore, the cross objections are not maintainable and dismissed as such.
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