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2013 (8) TMI 741 - AT - Income TaxPenalty u/s 271(1)(c) of the Income Tax Act - concealment of income - AO rejected to books of accounts since 90% of expenses paid in cash and not verifiable - AO applied the net profit rate @ 3.1% instead of 2.1% - Held that:- In the penalty order, the AO did not mention whether he has imposed the penalty for concealment of income or for furnishing inaccurate particulars of income. Relying upon the judgment of Hon'ble Gujrat High court in the case of New Sorathia Engineering Co. vs. CIT, [2006 (1) TMI 71 - GUJARAT High Court] , wherein it has been held that it is incumbent upon the Assessing Officer to state whether penalty was being levied for concealment of particulars of income by the assessee or whether any inaccurate particulars of income had been furnished by the assessee, it has been held in the present case that levy of penalty on estimate of income be cancelled. There is no definite finding of fact or any contrary material has been brought on record to prove that the assessee has filed inaccurate particulars of income - Levy of penalty under Section 271(1)(c) of the Act in the facts and circumstances of the case at estimate of income, would not be warranted – Decided in favor of Assessee.
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