The Tax Publishers2020 TaxPub(DT) 3856 (Jp-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Mere revision of income to a higher figure on estimate basis by AO did not automatically warrant an inference of concealment of income by the assessee and without any definite finding recorded by AO with regard to concealment of income or furnishing of inaccurate particulars of income, there could not be any question of imposition of any penalty under section 271(1)(c).

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Additions made purely on estimate basis without definite finding as to concealment or furnishing of inaccurate particulars of income -

AO made trading additions by applying higher GP rate and levied penalty under section 271(1)(c) on this count. Assessee's case was that no findings were recorded by AO in the assessment order that assessee had concealed income or furnished inaccurate particulars thereof. Held: Mere revision of income to a higher figure on estimate basis by AO did not automatically warrant an inference of concealment of income by the assesse and without any definite finding recorded by AO with regard to concealment of income or furnishing of inaccurate particulars of income, there could not be any question of imposition of any penalty in such a case where additions was made purely on estimate basis.

Supported by:Gulraj Vaswani v. ACIT, (ITSSA No. 21/JP/06) in Tax World Vol.-XXXIX page-35 (ii) Smt. Bitoli Devi v. ACIT (2007) 110 TTJ (Luck) 735 : 2007 TaxPub(DT) 1196 (Luck-Trib) Enfield Industries Ltd. v. DCIT, (2007) 13 SOT 28 (URO) : (2007) 107 ITD 1 (Kol.) : 2007 TaxPub(DT) 0511 (Kol-Trib) (iv) CIT v. P.H.I. Seeds India Ltd. (2008) 159 Taxman 9 (Delhi) : 2008 TaxPub(DT) 0402 (Del-HC) CIT v. K.R. Chinni Krishna Chetty (2000) 246 ITR 121 (Mad) : 2000 TaxPub(DT) 0250 (Mad-HC), CIT v. S. Rahamat Khan Birbal Khan Badruddin & Party, (1999) 240 ITR 778 (Raj.) : 1999 TaxPub(DT) 1242 (Raj-HC)ACIT v. Bansiwala Iron & Steel Re-rolling Mills, 21 TW 533 (JP)CIT v. Subhash Trading Co., (1996) 221 ITR 110 (Guj.) : 1996 TaxPub(DT) 0591 (Guj-HC) and Harigopal Singh v. CIT, (2002) 258 ITR 85 (P&H) : 2002 TaxPub(DT) 1625 (P&H-HC)ACIT v. Ganpat Lal Goyal, 32 TW 91 (JP)

REFERRED :

FAVOUR : in assessee's favour

A.Y. : 2004-05 to 2009-10

IN THE ITAT, JAIPUR BENCH

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