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TMI Blog2017 (11) TMI 1875X X X X Extracts X X X X X X X X Extracts X X X X ..... na Reddy, This Appeal is filed by the Revenue against Order, dated 14-03-2012, in IT(SS)A.No.28/Hyd/2011 on the file of the Income Tax Appellate Tribunal, Bench 'B', Hyderabad (for short 'the Tribunal'), whereby it has set aside the imposition of penalty of Rs. 1.27 Crores under Section 158 BFA(2) of the Income Tax Act, 1961 (for short 'the Act'). In the Appeal, the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee on 03-01-2002, a notice was issued under Section 158 BC of the Act, in response to which the respondent has filed returns showing its undisclosed income as NIL. In the course of assessment for the block period from 1996-1997 to 2001-2002, huge difference between the number of bottles issued and the number of bottles sold was found. The respondent claimed that the difference was on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty under this provision is not mandatory in each and every case where undisclosed income has been determined. This provision allows the assessing officer to use his discretion either to impose or not impose penalty after taking into consideration the undisclosed income will not automatically result in imposition of penalty under section 158BFA (2) of the Act. The Hon'ble Rajasthan High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal that the addition of undisclosed income was due to determination of income on estimate basis rather than on account of deliberate suppression of income by the respondent. In our opinion, the Tribunal's finding in this regard is proper and sound. The substantial questions of law are, accordingly, answered against the Revenue.
5. The Appeal is, accordingly, dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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