TaxTMI 
TaxTMI 
2021 (10) TMI 15
X X X X Extracts X X X X
X X X X Extracts X X X X
....548/Lkw/2018 is appeal against the imposition of penalty u/s. 271(1)(c) of the Act, whereas the appeal in ITA No. 549/Lkw/2018 is appeal against quantum additions. No one was present on behalf of the assessee when these appeals were called for hearing. However, there is an application filed by the assessee wherein it has been mentioned that the firm has been closed due to heavy losses and it cannot afford services of any lawyer and these appeals be decided on the basis of written submissions filed by him. So in view of these facts and circumstances, I took consent of ld. DR and he stated that since no one is appearing and these are quite old appeals, therefore, these can be disposed off on the basis of written submissions filed by the asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onsidered the rival submissions. Regarding Ground no. 1 of the assessee, we find force in the submission of Ld. DR of the Revenue that in the present case, there is no enhancement by Ld. CIT(A) in respect of disallowance of interest and salaries paid to partners because the same was not allowed by the AO also and therefore, there was no requirement to issue notice u/s. 251(2) of the Act by Ld. CIT(A). Therefore, Ground No. 1 (a) of the assessee is without any merit. 6. Regarding the merit of the allowability of deduction in respect of interest and salary paid by the assessee firm to its partners, it is seen that this aspect was decided by Ld. CIT(A) in view of the provisions of Section 184(5) and 185 of the Act. We also find that in the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty which the Assessing Officer has imposed for concealment of income. I find that the Assessing Officer in this case has estimated the income of the assessee by applying the net profit ratio and has rejected the books of accounts whereas the assessee had filed audited statements of account. The assessee in the written submission has submitted that assessee has faithfully discharged its onus to get the accounts audited and Assessing Officer had wrongly rejected the same and had not allowed the interest and remuneration to the partners. I find that penalty u/s. 271(1)(c) of the Act is imposable on an assessee if an assessee conceals its income or furnishes wrong particulars of income. Since the books of account of the assessee has been reject....