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2020 (9) TMI 865 - AT - Income TaxPenalty u/s 271(1)(c) - trading addition - Defective notice - non striking off the irrelevant portion of the printed show cause notice - assessment u/s 143(3)/153A making trading additions by applying the GP rate of 10% as against GP rate declared by the assessee - HELD THAT:- AO had made the addition on account of application of G.P. Rate of 10% whereas no findings were recorded by the AO in the assessment order that the assessee had furnished inaccurate particulars of income or had concealed the income. The AO had invoked the provisions of Section 145(3) of the Act and estimated the income of the assessee on the basis of earlier history of the case. Therefore, we are of the view that it is a case of an estimate against an estimate. Hence, no penalty is leviable in such a case where additions are based purely on estimate basis. The mere revision of income to a higher figure on estimate basis by the AO does not automatically warrant an inference of concealment of income by the assessee. The addition to the income of the assessee in this case is based on estimate basis whereas the concealment in our views implies some deliberate act on the part of the assessee in withholding the true facts from the authorities. See CIT vs K.R. Chinni Krishna Chetty [1998 (6) TMI 5 - MADRAS HIGH COURT] - Decided in favour of assessee.
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