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2013 (11) TMI 200 - ITAT INDOREPenalty u/s 271(1)(c) - The Assessing Officer had estimated net profit rate at 8% - In an appeal filed by the assessee in the quantum proceedings, the CIT(A) reduced the net profit rate from 8% to 5.18% and the order of CIT(A) was confirmed by Tribunal - The Assessing Officer had imposed penalty with reference to difference in estimated net profit rate sustained resulting into addition in income - Held that:- There was no reason to interfere in the order of CIT(A) deleting the penalty imposed u/s 271(1)(c) of the Income-tax Act, 1961 – Following Commissioner of Income-Tax Versus Chirag Ingots P. Ltd. [2004 (10) TMI 50 - MADHYA PRADESH High Court] - categorical finding was required to be recorded to prove the claim of the assessee as bogus while levying the penalty u/s 271(1)(c) - A categorically finding had also been recorded by the CIT(A) to the effect that despite extensive search operation, nothing incriminating was found/seized either in kind or in coin to substantiate that the income assessed and ultimately sustained on estimations, was, in fact, the concealed income earned by the assessee, since this was not conclusive and independently proved against the assessee on the strength of any evidence - We found that CIT(A) had dealt with various judicial pronouncements to arrive at a conclusion that it was not a fit case for levy of penalty - The detailed finding recorded by the ld.CIT(A) had not been controverted. While deleting the penalty, the ld. CIT(A) had categorically recorded a finding to the effect that no independent evidence was brought on record to prove beyond all shadows of doubt that the impugned sum ultimately sustained on estimations was the assessee’s income from undisclosed sources earned during the relevant previous year - As per CIT(A) unless there was a categorical finding of fact based on evidence to be brought on record against the assessee to this effect, the imposition of penalty u/s 271(1)(c) in respect of such addition made, without proving falsity in the explanation submitted and without bringing any evidence against the assessee was not justified – Decided against Revenue.
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