2025 (1) TMI 1678

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....armali (SR DR) ORDER PER ANIKESH BANERJEE Instant appeal of the assessee was filed against the order of the National Faceless Appeal Centre (NFAC), Delhi *for brevity, 'Ld.CIT(A)') passed under section 250 of the Income-tax Act, 1961 (for brevity, 'the Act'), date of order 25/05/2023 for A.Y. 2009-10. The impugned order was emanated from the order of the Learned Income-tax Officer, Ward 1....

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....CIT(A) as also before the ITAT, but the assessee has failed. Then the penalty proceedings were initiated under section 271(1)(c) and penalty was imposed in respect of income amount to Rs.11,76,195/- and penalty levied at Rs.3,98,700/- being 100% of the tax sought to be evaded. The penalty order was assailed before the Ld.CIT(A), but the Ld.CIT(A) rejected the appeal of the assessee. Finally the ap....

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.... as restricted by this Tribunal works out to Rs.89,628/-, which was essentially on the basis of estimate of gross profit. The issue about, justification of imposition of penalty, where the addition is made on the basis of an estimate is no longer res integra and is covered by certain decisions of this Tribunal as also various High Courts. A useful reference in this regard can be made to the decisi....

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.... this aspect about the original addition being restricted to 12.5% on the basis of an estimate as to gross profit and the consequent effect on the levy of penalty has not been considered by the learned CIT(A). This aspect being clearly borne out of record, could have been considered by the learned CIT(A), notwithstanding that, the assessee had, allegedly not responded to the various notices/commun....