9911796707
TMI Blog2021 (10) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ification of mistake if any which it has not done and through the grounds of appeal the assessee wants the Tribunal to review its own order which is not permissible in law. Appeal dismissed. Penalty u/s 271(1)(c) - concealment of income - AO estimated the income of the assessee by applying the net profit ratio and has rejected the books of accounts - HELD THAT:- Penalty u/s. 271(1)(c) of the Act is imposable on an assessee if an assessee conceals its income or furnishes wrong particulars of income. Since the books of account of the assessee has been rejected and total income has been computed on the basis of N.P. ratio there is no scope for imposition of penalty u/s. 271(1)(c) of the Act. In a number of judgment of various Benches of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of these facts and circumstances, I took consent of ld. DR and he stated that since no one is appearing and these are quite old appeals, therefore, these can be disposed off on the basis of written submissions filed by the assessee. The ld. DR, however, submitted that he strongly relies on the orders of authorities below and therefore the appeals filed by the assessee may be dismissed. 3. While going through the appeals files, I noticed that in appeal in ITA 549/Lkw/2018, the assessee is aggrieved with the additions, which the ld. CIT(A) had sustained. The grounds of appeal taken by the assessee are argumentative in nature. However, the facts which emerge from the material on record is that the assessment order has been passed on 12.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owability of deduction in respect of interest and salary paid by the assessee firm to its partners, it is seen that this aspect was decided by Ld. CIT(A) in view of the provisions of Section 184(5) and 185 of the Act. We also find that in the assessment order, it is observed by the AO that no bills/vouchers and books of account or any other supporting vouchers have been produced before him and therefore, he had no option but to estimate the income to the best of his judgment. He has invoked the provision of Section 144 of the Act although not specifically stated in the assessment order. As per sub-section (5) of section 184, where there is on the part of firm any such failure as mentioned in section 144, the firm shall be assessed without a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest and remuneration to the partners. I find that penalty u/s. 271(1)(c) of the Act is imposable on an assessee if an assessee conceals its income or furnishes wrong particulars of income. Since the books of account of the assessee has been rejected and total income has been computed on the basis of N.P. ratio there is no scope for imposition of penalty u/s. 271(1)(c) of the Act. In a number of judgment of various Benches of the Tribunal and courts this view that once books of account are rejected and income is estimated by applying N.P. rate, penalty u/s. 271(1)(c) is not imposable. 7. Under these circumstances, Hon'ble Allahabad High Court in the case of Naresh Chand Agarwal vs. CIT [2013] 357 ITR 514 (All) has held as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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