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2019 (4) TMI 197 - ITAT JAIPURPenalty U/s 271(1)(c) - income computed after relief provided by Hon’ble CIT(A) - non specifying the limb for reasons in the penalty notice to impose the penalty i.e. whether the penalty was initiated for concealment of particulars of income or for furnishing inaccurate particulars of income - HELD THAT:- AO had computed the penalty on income computed after relief provided by Hon’ble CIT(A). However ld CIT(A) had allowed the relief by directing the AO to compute the penalty on the net addition sustained by Hon’ble ITAT Jaipur. As settled law that on estimated addition, penalty under s. 271(1)(c) cannot be imposed because there can be no concealment in these cases, nor that the assessee has furnished inaccurate particulars of income. Any estimate is an opinion which is taken subjectively, when this difference of opinions leads to any addition, it cannot terminate into a penalty under s. 271(l)(c) . Further, it cannot be said that the process of imposition of penalty is automatic in the eventuality of estimated income. The mere fact of addition on an estimated basis, particularly when the assessment is made on the inference flowing from the inability of the assessee to establish the case pleaded by him, will not be sufficient for the purpose of imposition of penalty. The degree of proof required for the imposition of penalty is quite different from and is of a much higher order than that required for the purpose of making addition on an estimated basis. Besides, addition on the basis of estimate does not ipso facto supply evidence of concealment so as to justify penalty. Finding of concealment cannot be based on estimation alone. In the facts of the instant case, the factum of concealment was not proved beyond the shadow of doubt. No justification for imposition of penalty U/s 271(1)(c) of the Act in all the years under consideration - Decided in favour of assessee
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