2019 (6) TMI 889

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.... This is an appeal filed by the assessee against the order of ld.CIT(A)-I, Jaipur dated 13/11/2017 for the A.Y. 2007-08 in the matter of imposition of penalty U/s 271(1)(c) of the Income Tax Act, 1961 (in short the Act). 2. Rival contentions have been heard and record perused. Facts in brief are that the assessee is engaged in the business of trading and manufacturing of jewellery. During the co....

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....w. For this purpose, reliance was placed on the decision of the Hon'ble Third Member in the case of HPCL Mittal Energy Ltd. Vs Addl.CIT in ITA Nos. 554 & 555/Asr/2014 decision dated 07/05/2018. 4. With regard to merit of the addition, it was contended that the addition has been upheld on estimated basis on which no penalty is imposable for which reliance was placed on the decision of Hon'ble Jur....

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....ny income. Further estimation is always on presumptions and assumptions and without proper and specific linking with any evidence in support of such estimation assessee cannot be fastened with liability of penalty. Accordingly, it is well settled that no penalty is leviable u/s 271(1)(c) on the basis of trading addition due to disturbance in the G.P. rate disclosed by the assessee. Therefore, addi....