TMI Blog2010 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... action had been recorded by the Assessing Officer. – CIT(A) deleted the penalty, ITAT confirmed the order of CIT(A)– held that - Penalty being a quasi criminal proceeding there is a duty cast on the AO to establish the guilt of the assessee in concealing the income or furnishing of inaccurate particulars of such income. As stated the seizure of the books of the police is not an act of the assessee. No motives can be attributed to the non-availability of books of accounts to examine and verify the various claims made by the appellant – penalty deleted - 1097/2009 - - - Dated:- 25-1-2010 - Advocates who appeared in this case: For the Petitioner: Ms P.L.Bansal For the Respondent: None CORAM: HON'BLE MR JUSTICE BADAR DURREZ AHME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pies of the seized documents, based his assessment order on the limited documents provided and rejected the book results declared by the assessee. He estimated the income of the assessee at Rs 61,00,000/- (rupees sixty one lakh) as against the returned loss of Rs 83,64,468/- (rupees eighty three lakh sixty four thousand four hundred and sixty eight). He also initiated penalty proceedings separately. Aggrieved therefrom the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)], where substantial relief was granted and the total income of the assessee was estimated at Rs.1,02,980/- (rupees one lakh two thousand nine hundred and eighty). 3. Against this order the Revenue had filed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has concealed the income. Ultimately the AO has to resort to estimated addition only. He could not point out any specific item of any addition with any conclusive evidence. Even the addition made by the AO on estimated basis is substantially reduced by the CIT (A) after considering the various facts and figures and circumstances of the case. The said action of the CIT (A) has become final consequent to the decision of the Hon‟ble ITAT in dismissing the department appeal. Resultantly the income of Rs.1,02,980/- is on the basis of estimated profit ratio only. It is not on account of any specific item of addition or disallowance. Such an addition made on the basis of guess work cannot be subjected matter of penalty for conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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