2010 (12) TMI 110

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....satisfaction about concealment of income in the assessment order or in the notice under section 274 of the Income Tax Act?" During the search at the premises of the partner of the assessee and his family members, material was found showing that the stocks were far in excess of the stocks reflected in the stock register of the assessee. On that basis, the additions were made to the declared income of the assessee after giving opportunity to it. The additions were sustained by the CIT(A) as well as by the Tribunal with some modification. The assessing officer initiated penalty proceedings for concealing/furnishing of inaccurate particulars of income by the assessee and after due consideration the penalty was levied. The penalty was s....

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....essing Officer mentioned at theend of the assessment order that penalty notice under section 271(1)(c) has been issued for furnishing inaccurate particulars of income, it was found an indication that he had recorded the satisfaction during assessment proceedings clearly goes against the assesssee. Even on this aspect also, still it goes in favour of the revenue. In view of these facts and judicial pronouncements, the penalty so levied by the ld. Assessing Officer is upheld. The stand of the ld. CIT(A) is reversed." We have heard learned counsel for the parties. Learned counsel for the assessee submitted that penalty could not be levied as the additions were based on estimate. Reliance has been placed upon the judgment of this Court....