2014 (5) TMI 695

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..... bsp; Per Shri Anil Chaturvedi,A.M. 1. This appeal is filed by the Revenue against the order of CIT(A)-II, Surat dated 31.03.2011 for A.Y. 2005-06. 2. The relevant facts as culled out from the material on record are as under. 3. Assessee is a firm stated to be engaged in the business of dyeing and printing of fabric cloth on job charge basis. Assessee filed its return of income for A.y. 05-06 o .....

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..... .2011 dismissed the appeal of the Assessee. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us and has raised the following grounds:- (1) That, the Penalty Order made by the Id. Assessing Officer and upheld by the Ld. C.I.T.(A) is bad in law, against the facts, illegal, without jurisdiction, and needs to be quashed. (2) That, both the A.O. and C.I.T.(A) erred in levying pe .....

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..... ilities and adverse presumptions as against the materials on records to prove the act of furnishing inaccurate particulars. Therefore, the Penalty Order needs to be quashed and Penalty needs to be remitted. (5) That, the A.O. has also erred in calculating Tax demand of Rs.41,82,237/- vide penalty Order and the C.I.T.(A) also erred by confirming the working of Tax demand of the A.O. which is again .....

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..... s but the disallowance made at the end of A.O has been substantially reduced by the order of Tribunal and therefore also penalty could not be levied on the disallowance made originally by A.O. 5. The ld. D.R. on the other hand supported the order of A.O and further submitted that the present case is not a simple estimation of profit but was on account of non production of books before A.O. and CI .....

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..... and thus the addition made by A.O. has been reduced on account of the order of Co-ordinate Bench of Tribunal and thereby the addition to the extent upheld by the Tribunal has attained finality. In the present case, since the penalty is on the original disallowance made by A.O. We are therefore of the view that the levy of penalty on the such amount cannot be sustained. We therefore remit the matt .....

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