TMI Blog2013 (6) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer in levying penalty of ₹ 8,14,412/- u/s.271(1)(c) on the addition to the extent of ₹ 25,48,649/- on account of Gross Profit and valuation of Closing Stock. 2. It is therefore prayed that the above penalty levied by Assessing Officer and confirmed by CIT(Appeals) may please be deleted. 2. Briefly stated, the facts are that the assessee has submitted its return of income on 10/03/2005 showing total income of ₹ 24,96,513/-. The assessment was completed by the Assessing Officer u/s.143(3) on 01/12/2006 at the income of ₹ 50,45,179/- resulting into a net addition of ₹ 25,48,666/-. 2.1. The assessee challenged this addition before the ld.CIT(A). In the meantime, the AO initiated pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which were disclosed by the assessee during the course of survey u/s.133A, we find that the AO has not imposed any penalty with regard to these two incomes disclosed by the assessee in the course of survey and included by the assessee in the return of income because the penalty imposed by the AO on this difference of income as per returned income and assessed income which is admittedly on account of estimation of GP by the AO as against loss shown by the assessee in the books of accounts. Against this penalty, the assessee carried the matter in appeal before the ld.CIT(A) but without success and now the assessee is further in appeal before us. 3. It was submitted by the ld.AR of the assessee that no penalty in respect of GP addition is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the GP addition and not with regard to any addition on account of stock or cash transaction. The penalty order is passed by the AO dated 29/04/2011, i.e. before the Tribunal order in quantum proceedings which is dated 20/04/2012. As per the Tribunal order in quantum proceedings, the entire addition on the basis of estimating the GP @ 13.62% for full year has been deleted by the Tribunal. Hence, in our considered opinion, no addition stands confirmed by the Tribunal in quantum proceedings on which a penalty has been imposed by the A.O. 5. Regarding unaccounted investment in stock found at the time of survey and had been disclosed by the assessee in the return of income, no penalty is justified even if some part of that addition stands ..... X X X X Extracts X X X X X X X X Extracts X X X X
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