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2019 (6) TMI 928 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice - addition of bogus purchase of the assessee without actual supply of goods - HELD THAT:- The Chhattisgarh High Court in the case of CIT v. Vijay Kumar Jain [2010 (4) TMI 386 - CHHATTISGARH HIGH COURT] has held that the assessee declared the net profit by estimating it at the rate of 6.36 per cent. of his gross receipt while it was estimated at the rate of 10 per cent of gross receipts by the Assessing Officer and on these facts held that penalty for concealment cannot be levied as the assessee cannot be said to have concealed any particulars of income or furnished any inaccurate particulars of income. Also decided in SHRI NAVEEN AGARWAL VERSUS I.T.O., KISHANGARH. [2019 (4) TMI 674 - ITAT JAIPUR] A.O. made addition by estimating the profit @ 22.7% on the alleged unrecorded sales. After considering the entire facts and circumstances while disposing the quantum appeal hereinabove we have directed the A.O. to estimate the profit @ 15% and upheld the addition only to that extent. It is clear that the addition to the income is based on estimate of profit rate when the A.O. passed order vis a vis when we dispose the quantum appeal. In such estimated addition, no penalty is to be levied - thus we delete the penalty levied U/s 271(1)(c) of the Act for the assessment year 2010-11. - Decided in favour of assessee. Levy of penalty u/s 271AAA - assessee has submitted once the Tribunal has restricted the addition to 15% alleged /bogus purchases then the income of the assessee was estimated the addition to the income of the assessee is based on presumption and estimation - HELD THAT:- We note that the addition made by the AO is identical to the addition for the assessment year 2010-11. We already produced the order of this Tribunal as well as judgment of Hon’ble Jurisdictional High Court in the quantum appeals. Accordingly, in view of our finding for the assessment year 2010-11 the penalty levied U/s 271AAA of the Act against the addition made to the income of the assessee based on estimation/presumption is not sustainable consequently the same is deleted. - Decided in favour of assessee.
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