TaxTMI 
TaxTMI 
2020 (1) TMI 773
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....50,000/- which on appeal has been reduced to Rs. 3,50,000/- by the ld. CIT(A). Similarly, for A.Y 2014-15, the AO has estimated rental income at Rs. 1,10,000/- which on appeal has been reduced to Rs. 66,000/- by the ld. CIT(A). It was submitted that the element of conscious concealment and inaccurate particulars are not present in the instant case as there is no direct evidence to show or some circumstances found from which it can be gathered that omission was attributable to an intention or desire on part of the assessee to hide or conceal his income. It was submitted that there is no positive act of concealment on part of the assessee and thus penalty should not be levied and reliance was placed on the decision of Hon'ble Punjab & Haryana High Court in case of Harigopal Singh vs CIT (2002) 258 ITR 95. It was further submitted that in the show-cause notice, the AO has not specified the limb on the basis of which penalty was proposed to be levied and the AO has simply issued a pre-printed form without striking off the unnecessary portion of notice which shows non-application of mind by the AO and reliance was placed on the decision of Hon'ble Karnataka High Court in case of Manjuna....
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....ng. Therefore, the assessee's plea for the constraint of the parking is also not tenable. 7) Thus, in view of the above, the Plot is ought to have been let-out at least for the number of occasions on which the Mahurats are there as per the Panchang; i.e. 28. 8) Further, considering the fact that the parties who had booked the Plot for the functions have admitted to have paid the sum as mentioned by the assessee. The rates are varying from Rs. 10,000/- to Rs. 20,000/-. Therefore, for the remaining 11(28-17) Mahurats, the rate of booking is adopted at Rs. 15,000/- each and thus, the resultant sum of Rs. 1,65,000/- is added to the total Income. 9) The claim of the House taxes and the other Misc Expenses is not allowable in view of the fact that the same was not on account of the Plot under consideration and the evidences of the Misc. Expenses have also not been submitted. In view of the same, the sum of Rs. 99,496/- (Rs. 90,168/- for municipal taxes plus Rs. 9,328/- for other expenses) is disallowed and added to the total income of the assessee. 10) Taking into consideration the rates for marriage bookings, the other small party(ies)'s rates....
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.... have been let-out at least for the number of occasions on which the Mahurats are there as per the Panchang i.e. 28 during the respective year. Therefore, for the remaining 11 Mahurats other than 17 mahurats for which assessee has already offered rental income, basis the average rate of booking of Rs. 15,000/-, rental income was estimated at Rs. 1,65,000/-. Further, rental for small parties, exhibition and garba party were again estimated by the Assessing officer. Similar findings are recorded for other two assessment years. The said determination of income could form the basis of addition in the quantum proceedings, however for the purposes of levy of penalty, mere addition made in the assessment order could not form the basis of levy of penalty. It is a settled legal proposition that assessment and penalty proceedings are separate proceedings and therefore, mere addition made in the assessment order is not sufficient for levy of penalty. Further, we find that against said estimation of income done by the Assessing officer, the ld CIT(A) has reduced the quantum of estimation of rental income. Therefore, where there is no positive evidence or material beyond doubt of assessee ha....
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....ate particulars thereof on the part of the assessee, penalty under section 271(1)(c) of the Act cannot be levied. The AO had rejected the books of account and estimated the trading addition on the basis that the assessee had not maintained site-wise account, no head-wise details of claimed purchases were furnished, no separate head of expenses was maintained, work in progress was not declared, some wages were shown outstanding without complete details of creditors, stock register was not maintained and misc. expenses on water transportation etc. were not verifiable and purchase vouchers of sand, steel, bajri etc. were self made etc. Assessee explained reasons for the above defects which were not accepted by the AO as not found satisfactory. The AO accordingly made estimation. The circumstances suggest that it may be just and proper case of making estimated trading addition but an inference therefrom cannot be drawn beyond doubt especially keeping in mind the nature of work in not maintaining those books and details supported with proper vouchers etc. that there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee to attra....