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2018 (9) TMI 872 - AT - Income TaxPenalty u/s 271(1)(c) - assessee disclosed incorrect profit - incorrect GP estimation - Held that:- no satisfaction recorded by the ld AO in assessment order that whether the assessee has concealed income or furnished inaccurate particulars of income. Even in the penalty order dated 10.05.2013, the ld AO has held that the assessee is liable for penalty u/s 271(1)(c) of the Act as assessee has furnished inaccurate particulars of his income and concealed particulars of his income. Therefore, the ld AO is not certain about the exact charge on the assessee. Addition on account of gross profit was purely on estimation basis. In view of this it cannot be said that the assessee has furnished any inaccurate particulars of his income or concealed income on this issue. With respect to the addition of the sundry creditors, assessee has explained full details about difference between balance as per the books of assessee as well as the information obtained by the AO and reconciled. The assessee has shown that in some of the cases the customer has been billed certain goods which was not accepted by the assessee. In one of the case, the payment made by the assessee was also not recorded. Out of the total four creditors the addition was upheld only with respect to ₹ 177958/-. Though the addition is confirmed by the first appellate authority, but does not show that the assessee has not recorded any transaction in his books of account or any transaction recorded by him is false. Further the ld CIT(A) has also confirmed the penalty without verifying that whether the assessee is guilty of furnishing inaccurate particulars of income or concealment of income - decided in favour of assessee
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