TaxTMI 
TaxTMI 
2025 (5) TMI 1699
X X X X Extracts X X X X
X X X X Extracts X X X X
....22 passed by the ACIT, CC-3, Thane, for the Assessment Year [A.Y.] 2019-20. 2. In the only ground of appeal, the assessee has agitated action of the ld.CIT(A)in upholding the penalty of Rs. 53,02,999/- levied u/s.270A of the Act at the rate of 200 percent of tax on 'Under Reporting of Income' of Rs. 72,93,493/-, alleged suppressed sales. It is prayed that the penalty being void ab-initio, bad-in-law, illegal, baseless, unwarranted and hence be deleted. 3. Brief facts of the case are that the assessee is in the business of running a restaurant. The return of income for A.Y. 2019-20 was filed on 24.09.2019 declaring income of Rs. 32,09,130/-. Subsequently, a survey operation u/s.133A of the Act was conducted on the assessee's premises on 05....
X X X X Extracts X X X X
X X X X Extracts X X X X
....esponding to suppressed sales was upheld and the addition of Rs. 12,25,605/- on account of disallowance of expenses on ad-hoc basis was deleted. In the light of such facts, the ld.CIT(A) while dealing with penalty appeal, reduced the quantum of penalty by restricting it to the suppressed sales of Rs. 72,93,493/- only. 4. Aggrieved by the order of the Ld. CIT(A) against the quantum addition, assessee had filed an appeal before the Tribunal and the Coordinate Bench of ITAT in ITA No.4686/Mum/2023 dated 04.09.2024 allowed substantial relief to the assessee on the quantum addition of Rs. 72,93,493/-. Addition confirmed by the Hon'ble ITAT was determined at Rs. 10,94,023/- (r/o to Rs. 11 lakh), being estimated net profit taken at the rate o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g confronted one of the partners present during survey admitted the excess as undisclosed income of the assessee though retracted later. We find that the basis of the addition to the income as also imposition of penalty is not purely on estimate, rather based on undisclosed sales reflected in the incriminating papers found during survey. Even though the ITAT in quantum appeal(supra) has applied 15%, being net profit on the figures of suppressed sales only, in a way accepted the stand of the revenue that the said sales were unaccounted and undisclosed income of the assessee. 6.2 Besides, the assessee has pleaded that the penalty could not be imposed on estimated addition, without adducing any reason for repeated non-compliance both during a....