TaxTMI 
TaxTMI 
2008 (2) TMI 285
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....andigarh, Bench "B", Chandigarh (hereinafter referred to as "the ITAT"), passed in I. T. As. Nos. 234 and 235/Chd/2006, in the case of the assessee for the assessment years 1992-93 and 1993-94, respectively. In both these appeals, the following substantial question of law has been raised for consideration of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the penalty imposed under section 271(1)(c) of the Income-tax Act ignoring its own finding of the fact that the assessee had concealed its income by not recording certain sales which were evident from the invoices and G. Rs found and seized ?" 2. In both these appeals, common issue is involved which revolves around t....
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....ng Officer, in order to arrive at the quantum of such unaccounted sales, extrapolated the average sale price in 4 invoices to 53 invoices and proceeded to make an addition of Rs. 66,16,865. The said order passed by the Assessing Officer was challenged by the assessee in appeal before the Commissioner of Income-tax (Appeals), who endorsed the conclusion that the assessee had made unaccounted sales and was indulging in sales outside the books of account. The Commissioner of Income-tax (Appeals), therefore, proceeded to apply yield of 93.13 per cent. shown by the assessee in the immediately preceding year as against the yield of 92.57 per cent. shown by the assessee for the year under consideration. Accordingly, the addition of Rs. 15,50,000 w....
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....e filed an appeal against the said order before the Commissioner of Income-tax (Appeals), which was dismissed. 5. Feeling aggrieved against the said order, the assessee filed an appeal before the Tribunal, which was allowed and the penalty levied by the Assessing Officer and confirmed by the Commissioner of Income-tax (Appeals) was deleted, while observing as under : "In the present case, it is not in dispute that the addition had been made by the Assessing Officer by estimating the sales outside the books of account. The learned Commissioner of Income-tax (Appeals) estimated the yield and worked out the additional production, on this estimated additional production, he applied the average sale rate and worked out the additional sale ....
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....nished inaccurate particulars of income. In the present case, the Assessing Officer made the addition by estimating the sales outside the books of account, the estimate was made only on the basis that in one 'invoice book' original copies of the invoices in respect of four invoices were not available. However, no evidence was brought on record that the assessee vide those invoices made the sales outside the books of account. It was also not brought on record that if any sale was outside the books of account to whom that sale was made. It is true that the circumstances were such that some sales might have been made out-side the books of account, however, there was no conclusive evidence that the sales estimated by the Assessing Officer to th....