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2018 (1) TMI 83 - AT - Income TaxPenalty u/s.271(1)(c) - estimation of net profit - Held that:- Assessee is a partnership firm run Sushrusha Hospital. In this year the return was filed showing total income at ₹ 2,70,425/-. The AO on meager discrepancies rejected audited books of accounts and estimated net profit @ 6.1%. Being dissatisfied with the said order, assessee filed an appeal before ld. CIT(A) and ld. CIT(A) reduced net profit @ 3%, further, appeal filed before the ITAT, which also reduced estimation of net profit @ 2% of turnover. While passing the order of the penalty, ld. AO has not considered the relief granted by the ITAT. Thereafter, CIT(A) has also not considered the relief granted by the ITAT. Even though passed appeal order after deciding quantum appeal by ITAT. It is well settled principle that if there is no specific charge of either concealment of income or furnishing inaccurate particulars of income. No penalty u/s.271(1)(c) can be imposed while total income was estimated in view of the decision of ITAT. - Decided in favour of assessee.
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