TaxTMI 
TaxTMI 
2020 (1) TMI 773
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....ing the course of hearing, the ld. AR submitted that the penalty has been levied by the Assessing officer on estimation of rental income of Chitrakoot Place wherein the Assessing Officer has initially estimated the rental income at Rs. 4,43,496/- which on appeal has been reduced by the ld. CIT(A) to Rs. 2,50,000/- for A.Y 2011-12. Similarly, for A.Y 2012-13, the AO estimated the rental income at Rs. 5,50,000/- 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 ....
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.... and the assessee has inadvertently reported the net interest income basis the amount received/credited in his bank account instead of gross interest income. It was accordingly submitted that being an inadvertent mistake, the same should not form the basis for levy of penalty. 4. Per contra, the ld. DR submitted that it is not correct to say that the rental income is basis pure estimation. In fact, the AO has reopened the assessment proceedings basis this very reason and carried out detail examination and basis thereof, the estimation was made and our reference was drawn to the Page No. 8 of the Assessing Officer order for A.Y 2011-12 which reads as under:- "The assessee's A/R's reply and the details filed have been taken into co....
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....g 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 is adopted at the sum of Rs. 5,000/- each and the number of parties are estimated at 10. Thereby, the same results in additio....
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....ad declared correct rental income was genuine. Further, the claim of inadmissible depreciation of Rs. 3,251/- has also been admitted by the appellant. Therefore, I am of considered view that the AO has rightly levied the penalty of Rs. 78,255/- u/s 271(1)(c) in respect of addition/ disallowance of Rs. 2,53,251/- (Rs. 2,50,000 + Rs. 3,251). Accordingly, the penalty of Rs. 78,255/- levied by the AO u/s 271(1)(c) is hereby confirmed." 6. We have heard the rival contentions and purused the material available on record. We find that for A.Y 2011-12, the rental income has been determined by the Assessing officer not basis any material or direct evidence found against the assessee but basis the hypothesis that the plot ought to have been let-ou....
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....(DB Appeal No. 174/2010 dated 19.03.2012) wherein it was held as under: "6. We have considered the submissions of learned counsel for appellant and examined the reasons assigned by Appellate Authority as well as Appellate Tribunal for setting aside the penalty order. 7. The appellate authority as well as the appellate Tribunal both considered the matter in detail and by speaking order set aside the penalty levied by Assessing Officer, in the facts and circumstances of the present case. The relevant portion of Para 7 of order of the Tribunal is reproduced as under:- Para 7. ..... ....... ..... ..... ...... ......The enquiry conducted by the AO may lead to arrive at the findings as to whether the particulars disclosed are truthful or fa....
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.... 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 ....