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2021 (3) TMI 1118 - AT - Income TaxPenalty u/s 271(1)(c) - estimation of income on bogus purchases made by the assessee - HELD THAT:- As per the law, the provisions of section271 (1) (c) of the Act would be applicable only where the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income. However, the estimation of higher rate of profits by the AO cannot be termed as either concealment or furnishing of inaccurate particulars of income. As decided in M/S. NORTON ELECTRONICS SYSTEMS PVT. LTD [2014 (2) TMI 606 - ALLAHABAD HIGH COURT] and M/S VISION RESEARCH AND MANAGEMENT PVT. LTD. [2014 (11) TMI 1228 - ITAT LUCKNOW] when addition is made on estimate basis, no penalty is sustainable. There is no active concealment of income on the part of the assessee and additions made on estimation by the AO do not called for initiation of penalty. Thus, in our view, the penalty levied by AO and confirmed by Ld. CIT(A) is hereby deleted - Appeal filed by the assessee stands allowed.
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