TMI Blog2019 (3) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... duced complete details and records before AO for his verification. Therefore, it is a case of estimated income, in which, assessee agreed for higher net profit rate because of the discrepancies noted by the A.O. in the record produced by assessee. It is well settled Law that provisions of Section 271(1)(c) are not attracted to the cases where the income of assessee is assessed on estimate basis and additions are made therein on that basis. See HARIGOPAL SINGH VERSUS COMMISSIONER OF INCOME-TAX. [2002 (8) TMI 65 - PUNJAB AND HARYANA HIGH COURT] - Decided in favour of assessee. - ITA.Nos.5486/Del./2018 - - - Dated:- 5-3-2019 - Shri Bhavnesh Saini, Judicial Member For the Assessee : Shri T.R. Talwar, Advocate. For the Revenue : Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se material utilization, bills and vouchers related to labour and installation charges are mostly hand made vouchers or rough bills/self generated and payments were made in cash and other expenses could not be verified in the absence of proper bills and vouchers. The assessee, thus, submitted before the A.O. that his income may be estimated by applying net profit @ 5%. The assessing officer, accordingly, made addition of ₹ 13,75,710/-. 2.1. The assessing officer also noted that in assessment year under appeal, the assessee has received gross receipts from M/s. Sindh Projects Masonary amounting to ₹ 1,00,835/-. However, this receipt is not reflected in the books of account and the same was, therefore, added to the income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , this addition is restored to the file of Ld. CIT(A), therefore, at this stage penalty is not leviable on this amount. I, accordingly, set aside the Orders of the authorities below and cancel the penalty on this addition. 5. However, as regards addition of ₹ 13,75,710/- it is clear that assessee produced books of account and complete details before assessing officer. The assessing officer examined the books of account and all the bills/ vouchers and find certain discrepancies in the same. The A.O. also noted that in assessment order under appeal, the net profit rate of the assessee is higher as compared to the preceding assessment years. However, the gross profit rate is lesser as compared to the preceding assessment years. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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