9911796707
TMI Blog2019 (6) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... This is an appeal filed by the assessee against the order of ld.CIT(A)-I, Jaipur dated 13/11/2017 for the A.Y. 2007-08 in the matter of imposition of penalty U/s 271(1)(c) of the Income Tax Act, 1961 (in short the Act). 2. Rival contentions have been heard and record perused. Facts in brief are that the assessee is engaged in the business of trading and manufacturing of jewellery. During the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. For this purpose, reliance was placed on the decision of the Hon'ble Third Member in the case of HPCL Mittal Energy Ltd. Vs Addl.CIT in ITA Nos. 554 & 555/Asr/2014 decision dated 07/05/2018. 4. With regard to merit of the addition, it was contended that the addition has been upheld on estimated basis on which no penalty is imposable for which reliance was placed on the decision of Hon'ble Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any income. Further estimation is always on presumptions and assumptions and without proper and specific linking with any evidence in support of such estimation assessee cannot be fastened with liability of penalty. Accordingly, it is well settled that no penalty is leviable u/s 271(1)(c) on the basis of trading addition due to disturbance in the G.P. rate disclosed by the assessee. Therefore, add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e charge of concealment, penalty u/s 271(1)(c) could not be imposed." 8. In view of the above discussion, we do not find any merit in the penalty so imposed with regard to the addition upheld on estimation basis, therefore, we direct to delete the same. We direct accordingly. 9. In the result, appeal of the assessee is allowed in terms indicated hereinabove. Order pronounced in the open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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