Penalty under the penal provision cannot be imposed where income...

Penalty under the penal provision cannot be imposed where income or expenditure is determined purely by estimation; consequently, imposition of penalty for estimation-based determination is not justified. Disallowance arising from failure to deduct or pay tax at source is not, by itself, attractable to penalty under the penal provision when derived under the deduction provision, and thus no penalty follows on such disallowance. Additions characterized as arising from sundry creditors or debtors were treated as additions under deemed income provisions, but where underlying information was already on record and did not amount to concealment or inaccurate particulars, such additions cannot be equated with concealment and were set aside.