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TMI Blog2019 (6) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... see cannot be fastened with liability of penalty. Accordingly, it is well settled that no penalty is leviable u/s 271(1)(c) on the basis of trading addition due to disturbance in the G.P. rate disclosed by the assessee. Therefore, additions were made in the assessment order not on the basis of any concealment being detected in assessment but only on Ad hoc Basis. Hence it cannot be deemed to concealed income for the purpose of penalty u/s 271(1)(c) in the case of CIT Vs. Super Metal Re-Rollers Pvt. Ltd. [ 2003 (9) TMI 51 - DELHI HIGH COURT] - No merit in the penalty so imposed with regard to the addition upheld on estimation basis, therefore, we direct to delete the same. - Decided in favour of assessee. - ITA No. 197/JP/2018 - - - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lars of income, which makes such levy bad in law. For this purpose, reliance was placed on the decision of the Hon ble Third Member in the case of HPCL Mittal Energy Ltd. Vs Addl.CIT in ITA Nos. 554 555/Asr/2014 decision dated 07/05/2018. 4. With regard to merit of the addition, it was contended that the addition has been upheld on estimated basis on which no penalty is imposable for which reliance was placed on the decision of Hon ble Jurisdictional High Court in the case of CIT Vs. Krishi Tyre Retreading and Rubber Industries (2014) 360 ITR 580. 5. On the other hand, the ld DR has relied on the orders of the authorities below and contended that the A.O. has correctly levied penalty with respect to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Addition on estimate basis - Merely because the books of account of the assessee were rejected or estimated addition was made, no penalty is leviable - Assessee offered an explanation, which could not be termed as not bona fide - In the absence of any corroborative evidence to prove the charge of concealment, penalty u/s 271(1)(c) could not be imposed. 8. In view of the above discussion, we do not find any merit in the penalty so imposed with regard to the addition upheld on estimation basis, therefore, we direct to delete the same. We direct accordingly. 9. In the result, appeal of the assessee is allowed in terms indicated hereinabove. Order pronounced in the open court on 10th May, 2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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