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2018 (6) TMI 1277 - AT - Income TaxPenalty levied u/s 271(1)(c) - addition after rejecting the books of accounts u/s 145(3) on estimated net profit @ 8% - Held that:- When the assessee has not been specifically made aware of the charges leveled against him, as to whether there is a ‘concealment of income or furnishing of inaccurate particulars of income’ on his part, the penalty u/s 271(l)(c) of the Act is not sustainable. Assessing Officer has failed to make out his case by proving on record that the assessee has concealed particulars of income or has furnished inaccurate particulars of such income, rather proceeded to levy the penalty merely on the basis of addition made by the Assessing Officer while framing u/s 143(3) on the basis of estimated net profit of 8% by rejecting the books of accounts. So, we find that penalty levied by the AO and confirmed by the Ld. CIT(A) is not sustainable, hence ordered to be deleted. See Commissioner of Income Tax Kanpur vs. M/s Dee Control and Electric Pvt. Ltd. [2018 (1) TMI 454 - ALLAHABAD HIGH COURT]
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