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2016 (12) TMI 1146 - ITAT MUMBAILevy of penalty u/s 271(1)(c) - addition on account of income estimated @ 10% of turnover - Held that:- We find that the assessee in the course of statement recorded u/s 132(4) of the Act on 25/01/2006 had stated that his income from business of construction of godowns was around 10%. This statement of the assessee was a general one indicating the approximate rate of net profit which would be earned by the assessee from the said business. The net profit finally declared by the assessee vide his return of income from the said business was 9.53% i.e. 10% figure stated by the assessee in the 132(4) statement. The addition made by the AO is solely based on the statement of the assessee recorded u/s 132(4) of the Act and no defect or deficiency has been pointed out by him in support of the addition. Therefore, the penalty u/s 271(1)(c) would not be attracted on the addition of ₹ 5,58,372/-. The order of the ld. CIT(A) on the penalty in respect of ₹ 5,58,372/- is set aside and the AO is directed to delete the same. - Decided in favour of assessee. Addition made u/s 68 as unexplained cash credit on account of consideration received on sale of equity shares - Held that:- Penalty u/s 271(1)(c) is a civil liability and the wilful concealment is not an essential ingredient for attracting civil 16 liability unlike the matter of prosecution u/s 276C. While considering an appeal against an order made u/s 271(1)(c), what is required to be examined is the record which the officer imposing penalty had before him and if that record can sustain the finding that there has been concealment, that would be sufficient to sustain penalty. See UoI vs. Dharmendra Textile Processors (2008 (9) TMI 52 - SUPREME COURT ) The order of the ld. CIT(A) directing the AO to impose penalty u/s 271(1)(c) @ 100% on addition made u/s 68 is confirmed.- Decided in favour of revenue.
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