TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 69
X X X X Extracts X X X X
X X X X Extracts X X X X
....A) has erred both on facts and in law in confirming the penalty rejecting the contention of the assessee that no penalty for concealment can be levied on the income assessed on estimate basis. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the penalty despite the fact that the assessee has got relief from the Hon'ble ITAT. 6. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the penalty rejecting the contention of the assessee that no penalty is leviable on such a debatable and controversial issue. 7. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the penalty ignoring the fact that the penalty proceedings are independent proceedings, as such merely on the basis of disallowances and additions made by the AO, penalty cannot be levied. 8. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the penalty u/s 271(1)(c) of the Act without giving any finding as to the merits of the case on concealment and furnishing of inacc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 10.1.2013 filed before the AO during the course of penalty proceedings; written submissions dated 26.12.2013 filed before the Ld. CIT(A) during the course of appellate proceedings and the order passed by the ITAT in the quantum proceedings bearing ITA No. 3542, 3590/Del/2011. He stated that Ld. CIT(A) has wrongly confirmed the penalty under section 271(1)(c) of the Act despite the fact that there is neither concealment nor furnishing of inaccurate particulars. He further stated that Ld. CIT(A) has failed to understand the contention of the assessee that no penalty for concealment can be levied on the income assessed on estimate basis and assessee got relief from the ITAT. He further stated that Ld. CIT(A) also wrongly confirmed the penalty u/s 271(1)(c) of the Act without giving any finding as to the merits of the case on concealment and furnishing of inaccurate particulars of income. In the last it was submitted that it is a settled law that in case where the income has been estimated by applying a flat estimated rate of profit, and no other specific defects have been established which lead to concealment or furnishing of inaccurate particulars of income, no allegation could be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vits, copies of Income Tax Returns and assessment orders and blank share transfer deeds duly signed, have been impounded in the course of survey proceedings under Section 133A conducted on 16.12.2003, in the case of a sister concern of the assessee. The survey was conducted more than 10 months before the assessee filed its return of income. Had it been the intention of the assessee to make full and true disclosure of its income, it would have filed the return declaring an income inclusive of the amount which was surrendered later during the course of the assessment proceedings. Consequently, it is clear that the assessee had no intention to declare its true income. It is the statutory duty of the assessee to record all its transactions in the books of account, to explain the source of payments made by it and to declare its true income in the return of income filed by it from year to year. The AO, in our view, has recorded a categorical finding that he was satisfied that the assessee had concealed true particulars of income and is liable for penalty proceedings under Section 271 read with Section 274 of the Income Tax Act, 1961." 4. CIT Vs Zoom Communication (P.) Ltd. [191 Taxman....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s and perused the records, especially the orders of the authorities below, Written Submissions/Synopsis filed by both the parties and the case laws cited therein alongwith the Paper Book filed by the Assessee containing pages 1-49 having the copy of assessment order dated 18.12.2009 passed by the AO u/s. 143(3) of the Act; notice dated 18.12.2009 issued by the AO u/s. 274 read with section 271 of the Act; Assessee's reply dated 10.1.2013 filed before the AO during the course of penalty proceedings; written submissions dated 26.12.2013 filed before the Ld. CIT(A) during the course of appellate proceedings and the order passed by the ITAT in the quantum proceedings bearing ITA No. 3542, 3590/Del/2011. We find that assessee filed its return of income for the year under consideration on 31.10.2007, declaring an income of Rs. 1,53,993/-. Subsequently, the case of assessee was selected for scrutiny and the income of assessee was assessed at Rs. 20,62,570/-, vide order dated 18.12.2009 passed u/s 143(3) of the Act. In the said order, the AO has rejected the books of accounts of the assessee and has estimated the profit of the assessee by applying the G.P. rate of 4.90%. In appeal Ld. CIT(....