2018 (9) TMI 872

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....e grounds are challenged about the above penalty order. 2. The brief facts of the case is that the assessee is engaged in trading of mobile accessories. He filed his return of income on 30.09.2009 declaring income of Rs. 33189/-. The ld AO examined the gross profit of the assessee and held that for Assessment Year 2008-09 the assessee has disclosed GP of 5% wherein, for the current year it is 1.80%. Therefore, explanation was sought. The assessee explained the reason for the downfall in GP. The ld AO rejected the explanation and made an addition of Rs. 2 lac. The assessee also asked to explain the sundry creditors and to verify the same. The ld AO issued notice u/s 133(6) of the Act and found certain difference in the balance of those cr....

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....are concealment of income. He further held that there is no infirmity in the order of the ld AO in levying the penalty. Therefore, assessee is in appeal. 4. The assessee filed an application for adjournment of hearing submitting that he is ill. Looking to the matter, adjournment application of the assessee was rejected and same is decided on the merits of the case. 5. The ld DR vehemently supported the orders of the lower authorities. 6. We have carefully considered the rival contentions and perused the orders of the lower authorities. Firstly, looking at the assessment order passed by the ld AO, it is apparent that there was no satisfaction recorded by the ld AO in assessment order that whether the assessee has concealed income or....