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2017 (3) TMI 1522 - HC - Income TaxPenalty u/s 158BFA - addition made on the ground of enhanced GP rates - ITAT deleted penalty levy - Held that:- The first proviso contains four situations. All of them contemplate the filing of a return in block proceedings and the disclosure of income that was hitherto not revealed in the original proceedings. The second proviso applies only where the income disclosed during the block proceedings is exceeded in the final assessment proceedings, by an objective determination. In the facts of this case, the Revenue has in fact accepted the undisclosed income revealed by the assessee @ ₹ 21,36,111/-. All that it has done is that it has enhanced the amount to ₹ 50,01,857/- by applying a G.P. rate of 4.4% on estimate basis. Now, this is more of a derived or inferred income based upon estimation and not on the basis of the material seized or materials that can be deduced from the documents etc. so seized. For the foregoing reasons, the Court is of the opinion that in the circumstances of the case, the interpretation given by the ITAT to Section 158BFA (2) does not call for interference; it is reasonable. - Decided n favour of assessee.
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