2014 (5) TMI 695

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ting of fabric cloth on job charge basis. Assessee filed its return of income for A.y. 05-06 on 24.10.2005 declaring Nil income. The case was selected for scrutiny and thereafter assessment was framed under section 143(3) vide order dated 21.12.2007 and the total income was determined at Rs. 50,22,980/- after setting off of unabsorbed business loss of earlier years amounting to Rs. 35,78,004/-. The order of A.O was confirmed by CIT(A) vide order dated 29.10.2008. While framing the assessment under section 143(3) A.O made addition of Rs. 65,89,082/- on account of suppression of job charges and Rs. 48,40,134/- on account of unexplained expenditure. On the aforesaid additions made, A.O vide order dated 23.03.2010 levied penalty of Rs. 41,82,23....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rder needs to be quashed and Penalty needs to be remitted. (5) That, the A.O. has also erred in calculating Tax demand of Rs.41,82,237/- vide penalty Order and the C.I.T.(A) also erred by confirming the working of Tax demand of the A.O. which is against provisions of explanation 4 of Sec.271(l)(c) of the Act and thus, the Tax demand needs to be corrected as per the provisions of Explanation 4 of Sec.271(l)(c) of the Income Tax Act, 1961. 4. Though the Assessee has raised various grounds, the only effective ground is with respect to levy of penalty u/s. 271(1)(c) of the Act. The ld. A.R. submitted that against the quantum addition made by the A.O Hon'ble Tribunal vide order dated 28.12.2012 has substantially reduced the estimation and ....