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TMI Blog2021 (3) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... made on estimate basis, no penalty is sustainable. There is no active concealment of income on the part of the assessee and additions made on estimation by the AO do not called for initiation of penalty. Thus, in our view, the penalty levied by AO and confirmed by Ld. CIT(A) is hereby deleted - Appeal filed by the assessee stands allowed. - I.T.A. No. 5829/Mum/2019 - - - Dated:- 25-3-2021 - SHRI S. RIFAUR RAHMAN, AM And SHRI PAVAN KUMAR GADALE, JM Appellant by : Shri Karan, AR Respondent by : Shri Vijay Kumar Menon, DR ORDER Per S. Rifaur Rahman, Accountant Member The present Appeal has been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals) - 28 in short referred as Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the present case. In this sense, each case is undisputedly unique and stands on different pedestal. 5.13 Further, in the matter, it is relevant to note that in the scheme of section 271(1)(c), the infringement that leads to the .imposition of the penalty, is a civil liability and no MENS REA need to be proved. This was so held by the Hon ble Supreme Court in the case Union of India vrs. Dharmendra Textile Processor(2007) 212 CTR (SC) 432. 5.14 One of the principle arguments of the appellant and as aforementioned is that when the addition is on estimated basis no penalty u/s.271(1)(c) can be levied. However, much as this argument would appear attractive on the face of it, the fact of the matter is that the same conveniently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely making an estimation and enhancing the GP does not lead to concealment or furnishing of inaccurate particulars of income and invoking the jurisdiction of section 271(1)(c) of the Act. In this respect, he relied on various decision of Hon ble High Courts and Hon ble Supreme Court and submitted that the levy of penalty imposed by AO and confirmed by Ld. CIT(A) may be deleted. 5. On the other hand, Ld. DR relied on the orders passed by the revenue authorities. 6. Considered the rival submission and material placed on record, we notice from the record that AO levied penalty u/s 271(1)(c) of the Act on estimation basis without any concrete evidence of actual concealment. As per the law, the provisions of section271 (1) (c) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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