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TMI Blog2016 (7) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions which are not permissible under the law. Assessing Officer could not point out any cogent irregularity in the books of accounts which have been audited so as to arrive at the conclusion that the net profits were altered. It is improper to arrive at any such conclusion merely on the basis of comparison, presumption and assumption. The Assessing Officer is wrong in estimating the profit of the assessee at 40% basing the same on the profits of other firms in the same line of business when there is no concrete proof about the errors or irregularities in the books of accounts. We find that the Tribunal has rightly directed the Assessing Officer to take into consideration the net profit shown by the assessee and recalculate the deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act for the entire profit generated out of construction work of housing project known as Bhavi Darshan Sankul . The Assessing Officer disallowed the same and also issued notice for imposing penalty under Section 271(1)(c ) of the Act. The additions made by the Assessing Officer was confirmed by CIT(A) on appeal and the CIT(A) dismissed the appeal. 2.1 On appeal before the Tribunal by the assessee, by impugned judgment and order, Tribunal allowed the appeal and deleted the additions made by the Assessing Officer. Being aggrieved and dissatisfied with the impugned order passed by the Tribunal, the revenue has preferred the present Tax Appeal for consideration of the aforesaid substantial question of law. 3. Mr. Sudhir Mehta, learned a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates for both the sides and having gone through the materials on record more particularly the orders passed by the CIT(A) and the Tribunal, we are of the view that the levy of penalty by the Assessing Officer was on unjustified grounds and the Tribunal has rightly allowed the appeal filed by the assessee. The Assessing Officer did not give any finding that inaccurate particulars were furnished by the assessee. It appears that the Assessing Officer has compared the profit estimates of different firms in the same line of business and arrived at the conclusion that the assessee had shown better net profit for claiming deductions which are not permissible under the law. However, the Assessing Officer could not point out any cogent irregularity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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