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TMI Blog2018 (1) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of levy of penalty u/s 271(1)(c) of such addition is now covered by the decision of Hon’ble Jurisdiction High Court in case of CIT vs. Mahendra Singh Khedla [2012 (3) TMI 568 - RAJASTHAN HIGH COURT] - Decided in favour of assessee. - ITA No. 237/JP/2016 - - - Dated:- 8-1-2018 - Shri Vijay Pal Rao And dr. Arjun Lal Saini, JJ. Assessee by: Shri Rajeev Sogani (C.A.) Revenue by: Shri P.P. Meena (J.CIT) ORDER Vijay Pal Rao, This appeal by the assessee is directed against the order dated 28.12.2015 of CIT (A), Jaipur arising from penalty order passed u/s 271(1)(c) of the I.T.Act for Assessment Year 2007-08. The assessee has raised the following grounds:- 1. In the facts and circumstances of the case and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R of the assessee has submitted that the penalty levied u/s 271(1)(c) is based on the addition made by the AO on estimation basis without giving a finding that the assessee has actually inflated the claim of purchase. Thus, the AR has contended that no penalty can be levied when the income of the assessee was assessed an estimate basis. He has relied upon a decision of Hon ble Jurisdictional High Court in case of CIT vs. Mahendra Singh Khedla [2012] 252 CTR (Raj.) 453 (Raj HC). 6. On the other hand, ld. D/R supported the orders of the authorities below and submitted that disallowance has been confirmed this Tribunal to the extent of 15% of unverifiable purchases and the same has attained the finality. Therefore, the case of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel for appellant and examined the reasons assigned by Appellate Authority as well as Appellate Tribunal for setting aside the penalty order. 7. The appellate authority as well as the appellate Tribunal both considered the matter in detail and by speaking order set aside the penalty levied by Assessing Officer, in the facts and circumstances of the present case. The relevant portion of Para 7 of order of the Tribunal is reproduced as under:- Para 7. .....The enquiry conducted by the AO may lead to arrive at the findings as to whether the particulars disclosed are truthful or false or not proved to be satisfactory. In the first case it would be a positive case of no concealment, in second case it would be a positive case of con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere shown outstanding without complete details of creditors, stock register was not maintained and misc. expenses on water transportation etc. were not verifiable and purchase vouchers of sand, steel, bajri etc. were self made etc. Assessee explained reasons for the above defects which were not accepted by the AO as not found satisfactory. The AO accordingly made estimation. The circumstances suggest that it may be just and proper case of making estimated trading addition but an inference therefrom cannot be drawn beyond doubt especially keeping in mind the nature of work in not maintaining those books and details supported with proper vouchers etc. that there was concealment of particulars of income or furnishing inaccurate particulars the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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