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2019 (10) TMI 716 - AT - Income TaxPenalty u/s 271AAA - @ 10% confirmed after the order of ITAT more so when the addition is based on estimation of trading profit by applying GP rate - HELD THAT:- It is not a case of mere estimation of gross profit rate on declared turnover of the assessee but the fact of the matter which is clearly emerging from the orders of the authorities below as well as decision of the Coordinate Bench is that such estimation of gross profit is on reported sales/turnover as well as the undisclosed sales/turn over which has not been disclosed by the assessee in its regular books of accounts which was surrendered on the basis of search carried out at the premises of the assessee. Therefore, to the extent of profit estimated on undisclosed sales/turn over which has been found in the course of search and which has not been disclosed/recorded in the books of accounts maintained in the normal course of business, it is clearly a case of undisclosed income as defined in explanation to section 271AAA. No infirmity in the findings of the ld CIT(A) where he says that “such addition is also covered under the definition of undisclosed income being directly relatable to seized documents from the appellant of the specified previous year”. The penalty so levied on undisclosed income of ₹ 61,19,120 is hereby confirmed. Before parting, we would like to state that the decisions of Hon’ble High Court relied upon by the assessee are distinguishable on facts and doesn’t support the case of the assessee. - Decided against assessee.
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