2010 (1) TMI 32

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.... referred to as „the said Act‟) against the order dated 4th December, 2008 of the Income Tax Appellate Tribunal (hereinafter referred to as „the Tribunal‟) in ITA No.4484/Del/2007 for the Assessment Year 1997-98, whereby the Tribunal deleted the penalty imposed by the Assessing Officer under Section 271(1)(c) of the said Act. 2. The facts leading to the filing of this appeal are summarized as follows. The assessee company was in the business of manufacturing and exporting shoe uppers primarily to the erstwhile USSR. However, due to the disintegration of the USSR, the assessee‟s business reportedly went into losses and consequently no return was filed by the assessee for the year 1997-98. A notice under Section 148 w....

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....made on estimate basis and that no satisfaction had been recorded by the Assessing Officer. The Assessing Officer, observing that the profit was estimated after rejection of books of accounts due to certain discrepancies, imposed a penalty on the assessee of Rs.36,41,003/- (rupees thirty six lakh forty one thousand and three), on the ground that it was a clear case of furnishing inaccurate particulars of income. 5. Against this order, the assessee filed an appeal before the CIT(A), who deleted the penalty imposed vide order dated 07.09.2007, holding that the addition made by the Assessing Officer on the basis of estimated profit cannot be a subject matter of penalty for concealment of income. The CIT(A) further found that penalty was not....