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2019 (12) TMI 310 - AT - Income TaxPenalty u/s 271(c) - AO rejected the books of accounts showed by assessee and considering the nature of the assessee’s business estimated the profit at 8% of the total receipts - HELD THAT:- Penalty notice nowhere speaks about specific limb to levy the penalty because the particular charge was not tick off in the notice, therefore, in the said circumstances, the penalty is not justifiable hence the order of the CIT(A) confirming the penalty order of the AO is wrong against law and facts and is liable to be set aside. Penalty is not liable to be leviable in accordance with law. We further, found that in the present case, the penalty was levied on the basis of estimation of the profit after rejecting the books of accounts. The assessee was in the business of Civil Construction business and after rejecting his books of account, the income of the assessee was estimated @ 8% of the total turnover. No penalty is liable to be leviable specifically in the circumstances, when the income has been assessed on the basis of estimation basis in view of the decision of CIT vs. Metal Products of India [1984 (1) TMI 36 - PUNJAB AND HARYANA HIGH COURT] and in the case of Harigopal Singh vs. CIT [2002 (8) TMI 65 - PUNJAB AND HARYANA HIGH COURT] and in the case of CIT vs. Nawab and Bros. [1974 (5) TMI 7 - ALLAHABAD HIGH COURT] . Taking into account, all the facts and circumstances, we are of the view that the penalty is not liable to be sustainable in the eyes of law. - Decided in favour of assessee.
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