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2019 (6) TMI 1114 - ITAT CHANDIGARHLevy of penalty u/s 271 (1)(c) - addition in respect of peak cash credit - HELD THAT:- Assessee has explained that the assessee was engaged in the activity of sale and purchase of old vehicles and that the customers used to deposit certain amounts with the assessee so that the assessee may immediately book / purchase vehicles of their choice as and when the same are found available for purchase. The above contention of the assessee has not been totally rejected by the Revenue, that is why the AO apart from making the addition’s on peak cash credit also estimated the unaccounted profits on the deposits found in the bank account of the assessee If the AO was of the view that such deposits were out of unaccounted income of the assessee, there was no reason with the AO to estimate profits on such deposits on the basis of the turnover. CIT(A) has also given relief to the assessee observing that the assessee himself has also declared certain profits in respect of its activities of sale / purchase of vehicles. It is apparent that the impugned additions have been made by the lower authorities on estimation basis. However, there was no reliable or un-rebutted evidences on the file to prove that the assessee had actually furnished inaccurate particulars of income or concealed particulars of his income. Though, the additions have been made by the AO and further confirmed by the CIT(A) on the basis of estimation / preponderance of possibilities of introducing some unaccounted income into the bank account of the assessee - Appeal of the assessee treated as allowed.
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