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TMI Blog2008 (3) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... dditions have been made on the basis of estimate penalty cannot be imposed under Section 271(1)(c ) - no ground to interfere in the well reasoned judgment of the ITAT, hence Revenue’s appeals are dismissed - ITA No.529 of 2007 & 531of 2007 - - - Dated:- 12-3-2008 - Coram: Hon'ble Mr.Justice Satish Kumar Mittal Hon'ble Mr.Justice Rakesh Kumar Garg Rakesh Kumar Garg,J These two appeals f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st. On the basis of food cost norm in the Hotel Industry and the information gathered from CITCO and Haryana Tourism, the Assessing Officer adopted the food cost at 45 % of the total sales and accordingly, addition on account of suppressed sale was made. Therefore, penalty proceedings under Section 271(1)(c ) for furnishing inaccurate particulars of income were initiated against the assessee. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Assessing Officer has failed to indicate as to what were the reasons on the basis of which he was prima facie satisfied that penalty proceedings must be initiated and therefore, the penalty order was liable to be cancelled on this ground alone. The Commissioner of Income Tax (Appeals) also observed that the income assessed by the Assessing Officer and the Commissioner of Income Tax(Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed on estimate basis, without examining the basis of estimation ? There is a consistent view of this Court in a catena of judgments that penalty under Section 271(1)(c ) cannot be levied in a case where additions have been made on estimation basis. This Court, in Commissioner of Income Tax Vs. M. M. Rice Mills 253 ITR 17, Hari Gopal Singh Vs. Commissioner of Income Tax 258 ITR 85, Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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