https://www.taxtmi.com/caselaws?id=759936 ITAT Ahmedabad deleted penalties under sections 271(1)(c) and 271AAA imposed on unexplained investments. The AO initially added income based on gross profit from alleged suppressed sales, which CIT(A) modified to net profit basis, and ITAT further restricted to 1% of turnover per audited books. Since different appellate authorities adopted varying estimates ranging from gross/net profit to 1% net profit, and the final addition was purely estimate-based with no identification of specific undisclosed assets, penalty could not be levied for concealment or inaccurate particulars. Gujarat HC confirmed the deletion of investment additions, supporting that penalties cannot be imposed on estimations substituted by other estimations. en-us Wed, 09 Oct 2024 00:00:00 +0530 Thu, 10 Oct 2024 18:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759936 ITAT Ahmedabad deleted penalties under sections 271(1)(c) and 271AAA imposed on unexplained investments. The AO initially added income based on gross profit from alleged suppressed sales, which CIT(A) modified to net profit basis, and ITAT further restricted to 1% of turnover per audited books. Since different appellate authorities adopted varying estimates ranging from gross/net profit to 1% net profit, and the final addition was purely estimate-based with no identification of specific undisclosed assets, penalty could not be levied for concealment or inaccurate particulars. Gujarat HC confirmed the deletion of investment additions, supporting that penalties cannot be imposed on estimations substituted by other estimations. Case-Laws Income Tax Wed, 09 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759936