2026 (1) TMI 924

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....ment year 2017-18, wherein learned CIT(A) has dismissed assessee's first appeal, confirming the penalty levied by the Assessing Officer u/s. 270A of the Act, vide penalty order dated 08.02.2022. 2. Brief facts state that the assessee is a civil contractor and e-filed its return of income on 07.11.2017, declaring income of Rs. 1,85,38,780/-. The assessee declared net profit @ 4.22% on contract receipts of Rs. 44,31,37,081/-. Assessment u/s. 143(3) of the Act was completed on 13.12.2019 and the Assessing Officer, on the basis of non-uploading of certain vouchers for wages, repair & maintenance, purchases and site expenses, rejected assessee's books of account and applied the net profit rate of 4.65% on the contract receipts and enhanced th....

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....red in law in ignoring the peculiar facts & circumstances of the case and submitted submission & supporting documents and honest & bonafide explanation by the assessee. it is a well settled law that penalties are not to be imposed merely because there is a provision for imposing them. Penalties are a harsh punishment and should be imposed only if there is a willful contravention of any law 4. That while sustaining the impugned addition, Ld CIT(Appeals), NFAC, Delhi has also failed to give proper and reasonable opportunity to the appellant. thereby violation the principles of natural justice and condition and procedure prescribed under the statue 5. That while sustaining the impugned addition, Ld CIT(Appeals), NFAC, Delhi h....

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....uch non-specification, according to the learned representative, renders the initiation of penalty proceedings invalid. Second, it was argued that the alleged under-reported income is based purely on an arbitrary and unfounded estimation made by the Assessing Officer. The Assessing Officer has applied a net profit rate of 4.65% as against the net profit rate of 4.22% declared by the assessee, without taking into consideration the assessee's past history or any comparable cases. It was further submitted that the Assessing Officer has not disturbed the declared contract receipts on which the estimated net profit rate has been applied. The learned AR further submitted that clause (b) of section 270A(6) of the Act expressly excludes additions ma....