AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2015 (6) TMI 1189
X X X X Extracts X X X X
X X X X Extracts X X X X
....CIT (A) on 29.11.2013 upholding the penalty of Rs. 45,100/- imposed by the AO u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2009-10. 2. Briefly stated, the facts of the case are that the assessee is engaged in trading of cement. Closing stock of Rs. 3,85,580/- was shown in the audited balance sheet. The AO, during the course of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee and as estimated by the AO by applying the rate of last purchase bill dated 28.3.2009. But, for that, there is nothing to show that the assessee, in fact, concealed his income or furnished inaccurate particulars of income. There can be several reasons for a different valuation. It is not necessary that all the bags are always of good quality. Some of the cement bags may have leaked, spoilt o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....200.50 per bag, being the cost price of cement bags vide last purchase bill dated 28.3.2009. Apart from this estimate made by the AO, there is nothing to show that the way in which the assessee valued its closing stock was incorrect. This divulges that the addition has been made only on the basis of estimate made by the AO. It is a settled legal position that when income is estimated, then, there ....