https://www.taxtmi.com/caselaws?id=766103 The ITAT Chandigarh held that penalty under Section 271(1)(c) cannot be imposed when income is determined on estimated basis rather than actual concealment. The AO estimated profit at 24.50% versus assessee's declared 22.72% after rejecting books of accounts under Section 145(3). The assessee provided comparable financial statements from similar resorts showing their declared profit margin aligned with industry standards. The tribunal ruled that when assessment is based on estimation rather than deliberate misrepresentation, penalty is unwarranted. The penalty order was set aside and deleted, with the assessee's appeal allowed. en-us Thu, 13 Feb 2025 00:00:00 +0530 Tue, 18 Feb 2025 08:10:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766103 The ITAT Chandigarh held that penalty under Section 271(1)(c) cannot be imposed when income is determined on estimated basis rather than actual concealment. The AO estimated profit at 24.50% versus assessee's declared 22.72% after rejecting books of accounts under Section 145(3). The assessee provided comparable financial statements from similar resorts showing their declared profit margin aligned with industry standards. The tribunal ruled that when assessment is based on estimation rather than deliberate misrepresentation, penalty is unwarranted. The penalty order was set aside and deleted, with the assessee's appeal allowed. Case-Laws Income Tax Thu, 13 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766103