Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 472 - ITAT DELHILevy of penalty u/s 271(1)(c) - A.O. framed ex-parte assessment order u/s 144 rejecting the books of account - N.P. rate determination at higher rate @12% - CIT(A) reduced the application of the net profit rate to 8% by excluding cost of material supplied and sales tax - HELD THAT:- It is well settled Law that provisions of Section 271(1)(c) are not attracted to a case where income of assessee is assessed on estimate basis and additions are made therein on that basis. In the present case, for non-production of books of account and the details, A.O. rejected the books of accounts under section 145(3) of the Income Tax Act and applied higher net profit rate at 12% against the contractual receipt to make the addition. However, the Ld. CIT(A) reduced the application of the net profit rate to 8% by excluding cost of material supplied and sales tax. Therefore, it is not a case of concealment of income or furnishing of inaccurate particulars. The assessing officer made estimated addition which is reduced by the Ld. CIT(A) substantially. Since no definite finding of fact have been given for concealment of income or furnishing inaccurate particulars of income and income is merely estimated, therefore, it is of view that penalty is not leviable - Decided in favour of assessee.
|