https://www.taxtmi.com/caselaws?id=753802 ITAT Ahmedabad deleted penalty u/s 271(1)(c) imposed on closing stock valuation addition. AO levied penalty including additions already deleted by CIT(A), showing non-application of mind. Neither AO nor CIT(A) provided reasons explaining how closing stock valuation differences constituted concealment or inaccurate particulars. Authorities incorrectly assumed additions automatically warrant penalty, contrary to established law. The valuation difference merely reflected different methodologies - assessee used actual cost while department preferred estimated basis. Assessee's explanation appeared bona fide and wasn't adequately countered by Revenue. Penalty unsustainable. en-us Fri, 19 Jan 2024 00:00:00 +0530 Mon, 10 Jun 2024 19:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753802 ITAT Ahmedabad deleted penalty u/s 271(1)(c) imposed on closing stock valuation addition. AO levied penalty including additions already deleted by CIT(A), showing non-application of mind. Neither AO nor CIT(A) provided reasons explaining how closing stock valuation differences constituted concealment or inaccurate particulars. Authorities incorrectly assumed additions automatically warrant penalty, contrary to established law. The valuation difference merely reflected different methodologies - assessee used actual cost while department preferred estimated basis. Assessee's explanation appeared bona fide and wasn't adequately countered by Revenue. Penalty unsustainable. Case-Laws Income Tax Fri, 19 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753802