TaxTMI 
TaxTMI 
2014 (6) TMI 937
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....enses were not verifiable in absence of bills and vouchers and books were rejected during course of proceedings and the same was accepted by the assessee in the light of Hon'ble ITAT decision in assessee's own case for A.Y. 2006-07 which clearly indicates that the assessee files inaccurate particulars of income. 2. That the order of learned CIT(A) Kanpur being erroneous in law and on facts deserves to be vacated and the order of the Assessing Officer be restored. 3. That the appellant craves leave to modify any of the grounds of appeal or take additional ground during the pendency of this appeal." 3. Learned D.R. of the Revenue supported the penalty order whereas Learned A.R. of the assessee supported the order of CIT(A). He place....
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.... given in the asst. order. There is no positive material on record to indicate that the said expenditure claimed by the assessee was bogus and/or the assessee had concealed its income or had furnished inaccurate particular of the income. The accounts of the assessee were duly audited and all the expenses incurred by the assessee were duly recorded in its books and were broadly verifiable. It was the case of the assessee that all bills and vouchers except those relating to the Satellite Centres were available. These Satellite Centres, in absence of any regular staff, sent statement of expenditure. But the fact remained that since the training being imparted in these centres was on stipulated norms, similar kind of expenditure was expected to....
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....come is assessed on estimate basis. In a case where after a detailed investigation and enquiries made by the A.O., the assessee is confronted with the evidence and material, and the assesses fails to dislodge the factual position on the basis of which additions are made, penalty can definitely be imposed. But in a case like the present case, the addition has been made purely on estimate without references to any clinching evidence/material being on record, levy of penalty is not sustainable on figures which are merely based on guess work or estimate. 4.3 Discussion regarding Explanation to sec, 271(1)(c): The department is not bound to prove any malafideness or mens rea on the part of the assessee but a claim made by the assessee under bo....
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....o indicate that the said expenditure claimed by the assessee was bogus and/or the assessee had concealed its income or had furnished inaccurate particular of the income. These findings of the CIT(A) could not be controverted by learned D.R. of the Revenue. 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 estimat....