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2017 (4) TMI 1059 - AT - Income TaxPenalty u/s 271(1)(c) - addition made by the AO by estimating the value of three items of stock - Held that:- The findings of the AO for levying penalty that the Assessee failed to offer an explanation and hence, Explanation 1 to section 271(1)(c) was squarely attracted and the addition made in the assessment order in computing the income of the assessee shall be deemed to represent the income in respect of which particulars have been concealed is factually incorrect and legally untenable as explanation alongwith documentary evidence had been filed to substantiate the value of the three items because of which the AO estimated the value of three items at ₹ 59.48 per mtr instead of ₹ 191.57 per mtr estimated by the survey team. Thereafter, the Ld. CIT(A) estimated the value of three items at ₹ 37.96 per mtr instead of ₹ 59.48 per mtr estimated by the AO. Keeping in view of the facts and circumstances of the case, we are of the view that penalty on estimation of valuation of the said items are not leviable and deserve to be cancelled. Our aforesaid view is fortified by the judgment in the case of Naresh Chand Agarwal vs. CIT [ 2013 (6) TMI 68 - ALLAHABAD HIGH COURT] wherein observed that no penalty u/s 271(1)(c) can be imposed with reference to the addition made on estimation basis. The assessee has not furnished inaccurate particulars of income and there are no findings of the Assessing Officer and the Ld. CIT (Appeals) that the details furnished by the assessee in his return are found to be inaccurate or erroneous or false. Accordingly, we delete the penalty in dispute made u/s. 271(1)(c) - Decided in favour of assessee
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