9911796707
TMI Blog2000 (10) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 21st September, 1994 passed by the learned CIT(A)-XII. Ahmedabad wherein the learned first Appellate Authority has upheld the action of the AO in levying the penalty under section 271(1)(c) but allowed partial relief to the assessee with regard to the quantum of penalty which was imposed by the AO at an amount of Rs. 74,973. 2. Briefly the facts are that the assessee has filed a return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, the Tribunal vide its order dated 30-6-1997 in ITA No. 1099/Ahd./92 for assessment year 1988-89 sustained the following additions only : (a) Addition on account of GP Rs. 60,000 (b) Entertainment expenses Rs. 2,000 (c) Vehicle expenses on account of personal user by partner Rs. 6,000 (d) Depreciation Rs. 5,399 4. In the meanwhile the AO levied a penalty of Rs. 74,973 und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the decision of the Ahmedabad Bench of the Tribunal in the case of Patel Engineering Co. v. ITO [1988] 39 Taxman 236 in ITA No. 623/Ahd./85, order dated 20-11-1987. The learned DR supported the order of the CIT(A). 6. After hearing the parties to the dispute, I am of the opinion that this is not a fit case for levy of penalty as the additions sustained by the Tribunal are of such a nature w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of labour charges where not fully verifiable. In such a situation there may be a good ground for rejecting the books and making the additions but this alone will not justify levy of any penalty for concealment of income or for furnishing inaccurate particulars of income. Accordingly the penalty levied is directed to be deleted.
7. In the result, the appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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