TaxTMI 
TaxTMI 
2014 (8) TMI 66
X X X X Extracts X X X X
X X X X Extracts X X X X
....of by this consolidated order for the sake of convenience. 2. During the course of hearing of the appeal, the ld. counsel for the assessee has invited our attention to the fact that survey operation under section 133A of the Act was conducted on the assessee's premises on 26.2.2010 and during the course of survey, audited balance sheet along with some other documents, books of account and computer hard disc, etc were impounded. Along with all these documents, another audited balance sheet notarized by notary officer disclosing certain inflated figures of debtors' turnover and gross receipt were also impounded. The assessee has explained that the inflated balance sheets were prepared for obtaining contracts from different agencies by proj....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... I.T.A. No.422/LKW/2012 and the judgment of the Hon'ble jurisdictional High Court in the case of Naresh Chand Agarwal vs. CIT, 98 DTR (All) 280, in which their Lordships of the Hon'ble Allahabad High Court has held that in a case of estimation of income after rejection of books, no penalty could be imposed under section 271(1)(c) of the Act. Copies of the order of the Tribunal and the judgment of the Hon'ble jurisdictional High Court are placed on record. 4. Per contra, the ld. D.R. has placed reliance upon the order of the ld. CIT(A). 5. Having given a thoughtful consideration to the rival submissions and from a careful perusal of the orders of the authorities below, we find that undisputedly the books of account of the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d down in the case of CIT vs. Arjun Prasad A/it Kumar (2008) 214 CTR (All) 355 : (2008) 1 DTR (All) 272, where it was observed that : "Appeal (High Court)-Substantial question of law.-Penalty under s. 271(1)(c)-CIT(A) deleted penalty under s. 271(1)(c) on the ground that there being nothing on record that assessee's explanation lacked bona fides, penalty under s. 271(1)(c) could not be imposed on the basis of estimating sales and making addition by applying net profit rate-Same was rightly sustained by Tribunal and no substantial question of law arises" 12. Moreover, it may be mentioned that no finding of deliberate concealment of income was brought in the instant case as the assessee has never suppressed the interest income from ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e. We also find that it is noted by the Assessing Officer in the penalty order that in the course of assessment proceedings, the assessee has filed details of various expenses but was unable to furnish complete vouchers in respect of expenses claimed. It is also noted by the Assessing Officer in the penalty order that the books of account of the assessee were rejected by the Assessing Officer u/s 145(3) of the Act and the Assessing Officer estimated the income by allowing expenses on estimate basis. Under these facts, the judgment of Hon'ble Allahabad High Court cited by Learned A.R. of the assessee is squarely applicable. In that case also, the income was assessed by the Assessing Officer by applying the net profit rate of 8% and it wa....