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TMI Blog2014 (6) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... (7) TMI 81 - GUJARAT High Court] - when the addition was made on estimate basis, penalty u/s 271(l)(c) was not leviable – the penalty on the addition is set aside. There is no finding of the AO that the bank account in which the cash sales were deposited were disclosed in the balance sheet - thus, the matter is remitted back to the AO for verification of the submissions and as to whether the bank account in which the cash sales are deposited was disclosed in Balance Sheet and thereafter decide the issue – Decided partly in favour of Revenue. - I.T.A. No. 983/AHD/2011 - - - Dated:- 18-6-2014 - Shri G. C. Gupta And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri P. L. Kureel, Sr. D.R For the Respondent : Shri Tush ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 29.6.2010. Aggrieved by the order of AO, Assessee carried the matter before CIT(A). CIT(A) vide order dated 20.1.2011 granted substantial relief to the Assessee and therefore aggrieved by the order, Revenue is now in appeal before us and has raised the following grounds:- 1. On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in deleting penalty levied on addition made on account of low G.P.(as the turnover of the assessee had increased by 6.36% to the immediate preceding year and G.P. was abnormally dropped from 8.50% to 1.91% ) inspite of the assessee's failure to produce books of accounts and any other documentary evidence during assessment and penalty proceedings. 2. On the facts and circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and had thus accepted the findings of AO. He submitted that in the absence of books of accounts, the AO rightly made estimation of gross profits and the estimation was based on the assessees own history of gross profits and the addition was not an adhoc estimation. He further submitted that Ld CIT(A) had not appreciated the fact that Assessee had deliberately not produced the books of accounts during enquiry stage at Investigation wing, assessment proceedings and penalty proceedings and further it was not proved by Assessee before CIT(A) that the GP disclosed by the Assessee was actual and correct. With respect to addition of Rs 69,37,812/- made on account of unexplained investments, it was submitted that Assessee had deposited huge sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss profit on the basis of past results of the Assessee and based on such estimation, addition was made and penalty was also levied. Thus it is seen that addition was made on estimate basis. We are of the view that in the absence of books of accounts, the Revenue was fully justified in making additions but the quantum addition is not sufficient for levying of penalty u/s. 271(1)(c) of the Act for the reason that it is well settled that the parameters of judging the justification for addition made in assessment case of Assessee is different from the penalty imposed on account of concealment of income. We also find that the co-ordinate Bench of Tribunal in the case of Inducto Ispat Alloys (supra) and relying on the decision in the case of Nav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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