2019 (3) TMI 390

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....BIN. The assessing officer asked the assessee to submit comparative chart of gross profit and net profit ratio for current assessment year and for the preceding two assessment years. The chart is reproduced in the assessment order, which shows that in assessment year under appeal, assessee has shown the net profit rate of 3.37%. However, in preceding assessment years 2009-2010 and 2010-2011, assessee has shown net profit rate of 2.48% and 1.48% respectively. The gross profit rate in assessment under appeal is 8.87%. However, in preceding assessment years 2009-2010 and 2010-2011, the assessee has shown the gross profit rate of 12.87% and 11% respectively. The assessing officer, thereafter, examined the books of account of the assessee and th....

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....on of Rs. 1,00,835/- have been enhanced to Rs. 2,62,923/-. The assessing officer, therefore, noted that concealed income comes to Rs. 14,76,545/-, on which, penalty under section 271(1)(c) was levied. 3. The assessee challenged the penalty order before the Ld. CIT(A) and it was submitted that penalty have been levied for enhancement of net profit rate, therefore, it is not a case of concealment of income or furnishing inaccurate particulars of income. The Ld. CIT(A), however, dismissed the appeal of assessee. 4. After considering the rival submissions, I am of the view that penalty is not leviable in the matter. Learned Counsel for the Assessee, at the outset, submitted that the ITAT, Delhi Bench in the case of the same assessee in IT....

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....against the assessee. Therefore, even if there is discrepancies noted in the books of account and other records produced by assessee, but, it is not a case of concealment of income or furnishing inaccurate particulars of income by the assessee. Since the assessee has shown higher income by showing better net profit rate in assessment year under appeal as compared to preceding assessment years, therefore, there was no occasion for the assessee to conceal income or file inaccurate particulars of income. The assessee produced complete details and records before assessing officer for his verification. Therefore, it is a case of estimated income, in which, assessee agreed for higher net profit rate because of the discrepancies noted by the A.....