Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 997 - ITAT VISAKHAPATNAMPenalty u/s 271(1)(C) - unexplained cash credit - Held that:- It is not logical to make addition only in respect of deposits without giving credit to the withdrawals made earlier. Particularly in the absence of any other material suggests that the earlier withdrawals have been spent away. AO has given a credit to the extent of ₹ 77,43,204/- relating to the sales amount. On appeal, the Ld.CIT(A) adopted the methodology of amounts deposited within 3 days and withdrawals and accordingly deleted the further addition to the extent of ₹ 54,45,920/-. On appeal, the ITAT further granted relief on the basis of estimation and directed the AO to make addition of ₹ 5,00,000/-. Ultimately the addition sustained in this case only on the basis of estimation. Therefore, the AO is not able to establish in this case the assessee concealed income by furnishing inaccurate particulars. It is not a fit case to impose penalty u/s 271(1)(C) of the Act. Accordingly, the penalty is deleted and the appeal filed by the assessee is allowed.
|