TMI Blog2016 (7) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be reached than that the failure to return the correct income was no on account of any fraud or gross or willful neglect on the part of the assessee. As decided in AARKAY SAREE MUSEUM [ 1990 (8) TMI 97 - BOMBAY HIGH COURT] ribunal had rightly held that merely because certain additions were made in the trading account by the Assessing officer, it did not necessarily follow that assessee had concealed its income the cancellation of penalty was valid. - Decided in favour of assessee. - I.T.A No. 165(Asr)/2016 - - - Dated:- 12-7-2016 - SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER For the Appellant : Sh. Ashwani Kalia (CA.) For the Respondent : Sh. A.N. Misra (DR.) ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty as the addition was on estimate basis. To calculate accurate income or evasion/concealment the AO needs properly and accurate books of accounts. In view of the facts and circumstances of the case it is clear that penalty levied by the AO is justified. Hence upheld. 5. Aggrieved the assessee is in appeal before us. 6. At the outset, the learned AR submitted that assessee had claimed before A.O. that while applying net profit rate of 8% the Assessing Officer must allow interest and salary paid to partners and also allow depreciation on fixed assets. The Assessing Officer and learned CIT(A) did not allow the same, however, the Hon ble ITAT, Amritsar Bench, vide order dated 11.2.2016 in ITA Nos.195 196(Asr)/2014 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(1) (c) was not imposable in the present case. The Gujrat High Court in the case of CIT vs. Subhash Trading Company (1996) 221 ITR 110 (Guj) has held as under: Held, that a best judgment assessment had been made. While the assessee in its books of account disclosed the total sales to be ₹ 7,75,000/-the Income-tax Officer on rejection of the books of account estimated the sales to be ₹ 8,75,000 which on appeal, the Tribunal reduced to ₹ 8,00,000. So also, while the gross profit disclosed by the books of account of the assessee was 5 per cent., the Income-tax Officer estimated the gross profit rate at 15 per cent. which again was reduced by the Tribunal to 12 per cent. In this circumstances, in the absence of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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