TaxTMI 
TaxTMI 
2018 (3) TMI 70
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....y at Rs. 1,17,818/- U/s 271(1)(c) of the Income Tax Act, 1961, without considering the fact that there was no concealment of income in any manner nor were any inaccurate particulars of income furnished by the assessee. Therefore, the consequent penalty deserves to be deleted. 3. on the facts and in the circumstances of the case the Ld. CIT(A) has grossly erred in upholding the levy of penalty on account of profit estimated by him by applying a random/unreasonable profit rate, without appreciating the well established law that no penalty can be levied merely on the basis of estimation of income. Therefore the penalty levied on this account deserves to be deleted. 4. on the facts and in the circumstances of the case the Ld. CIT(A) has grossly erred in upholding the levy of penalty on account of addition made u/s 41(1)(a) without appreciating the fact that assessee had made every possible effort to establish the genuineness of opening credit balance however, acting on the wrong advice of the counsel, the said credit balance was shown as NIL in return filed in response to notice u/s 148 of Income Tax Act, 1961. Hence, this being purely a case of genuine mistake which was made und....
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....assessee maintained with the IDBI Bank to the tune of Rs. 20,30,913/-. The said deposit was made out of the sale proceeds however, due to bona-fide mistake/ignorance on the part of the assessee, the same could not be disclosed in the return of income. On being pointed out during the course of assessment proceedings, the assessee explained the deposits made in the bank account out of the sale proceeds and the bank account could not be disclosed due to bona-fide mistake. However, the AO added the entire amount of Rs. 20,29,000/-to the income of the assessee which was restricted by the ld. CIT(A) to the extent of 10% of the said deposit by estimating the profit on the said turnover fund deposited in the bank. Thus, the ld. CIT(A) deleted the addition to the extent of 18,26,100/- and sustained the balance amount of Rs. 2,02,900/-. The addition sustained by the ld. CIT(A) in the quantum appeal is based on estimation of income of the assessee and therefore, the penalty u/s 271(1)(c) of the Act cannot be levied on the addition made on the basis of estimation. When the addition was sustained merely on estimate basis without any adverse view or observation and without providing any basis fo....
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....not ipso facto constitute default of concealment on the part of the assessee. The ld. AR has also relied upon the decision of Coordinate Bench of this Tribunal dated 31.10.2014 in case of Smt. Durga Devi Somani vs. ITO in ITA No. 672/JP/2011 as well as the decision dated 17.10.2014 in case of Sh. Ashish Gupta vs. ITO in ITA No. 671/JP/2011. The ld. AR has also relied upon the decision of Hon'ble Gujarat High Court in caseof National Textiles vs. CIT 249 ITR 125 and submitted that if the assessee gives an explanation which is unproved but not dis-proved and circumstances do not lead to the reasonable and positive inference that the assessee's case is false, the explanation cannot help the Department because there will be no material to show that the amount in question was the income of the assessee. The ld AR has also placed reliance on the decision of Hon'ble Supreme Court in case of CIT vs. Reliance Petroproducts (P) Ltd. 322 ITR 158. 5. On the other hand, ld. DR has submitted that it is a clear case of concealment of particulars of income when the assessee has not disclosed the sales in the books of accounts which was detected during the assessment proceedings. Therefore, when t....
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....e out with explanation that due to bona-fide mistake the assessee could not disclose the said bank account and income on the sale proceeds deposited in the bank account in the return of income. The AO made the addition of the entire amount of deposit in the bank account however, the ld. CIT(A) restricted the said addition by taking the profit element in the sales at 10%. Thus, the income though estimated by the ld. CIT(A) by applying the profit @ 10% however, the primary reason for addition is non discloser of the sales by the assessee either in the books of accounts or in the return of income. Only when the AO detected the deposit made in the bank account through AIR information the assessee accepted the said deposit made in the bank account representing the sales of the assessee. Therefore, it is a clear case of concealment of particulars of income by the assessee. We find that the explanation of the assessee being bonafide mistake is without any basis because of the reasons that this is not a case of not recording these sales in the books of account but the assessee has not disclosed even the bank account in which the said deposits were made by the assessee. Therefore, we do not....
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....ee Gurukripa Stones Pvt. Ltd. who has confirmed the receipt of Rs. 3 lacs which was repaid by the assessee through cheques. However, the said creditor has not admitted receipt of remaining amount of Rs. 2,14,309/-. Thus, it is a clear that because of this discrepancy in the accounts of the assessee and the creditor the AO has made the addition. The ld. AR of the assessee has relied upon the decision of Coordinate Bench of this Tribunal while in case of Smt. Durga Devi Somani vs. ITO (supra) wherein the Coordinate Bench of this Tribunal dealing with an identical issue of levy of penalty as held in para 2.11 as under:- 2.11 We have heard the rival contentions and perused the material available on record. We are inclined to delete the penalty on following reasons:- i. It clearly emerges that the amounts in question were carried over trade credits from earlier year, corresponding purchases were included in trading a/c thus legally speaking if trade credits are added as cessation of liability, the relevant entries exist in books and if they are held as bogus then they belong to earlier years. Besides relevant information is furnished along with return of income. ii. Though surre....