2015 (10) TMI 1493

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....profit on account of unproved labour payment. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have upheld the order of the assessing officer especially so since the order was passed on addition confirmed in 2nd appeal and assessee had failed to offer any explanation to the show cause notice issued prior to levy of penalty. 3. It is, therefore, prayed that the appellate order of the Ld. CIT(A) be set-aside and that of the A.O. restored back. 2. The brief facts of the case are that the assessee is a partnership firm engaged in the business of diamonds cutting and polishing on job labour basis. During the year the assessee had shown Gross Profit of 1.74% on job labour receipt of Rs. 19,45,65,313/-. T....

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....late Authority, wherein various contentions were raised on behalf of assessee and having considered the same, CIT(A) has granted relief to the assessee and the same has been opposed before us by the Revenue inter alia stating that the CIT(A) erred in deleting the penalty levied by the Assessing Officer u/s 271(1)(c) of Rs. 17,42,370/- in respect of enhancement of net Profit on account of unproved labour payments. The ld. Departmental Representative also submitted that on the facts and in the circumstances of the case, the CIT(A) ought to have upheld the order of the Assessing Officer, especially so since the order was passed on addition confirmed in Second Appeal and the assessee had failed to offer any explanation to the show-cause notice ....