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TMI Blog2024 (9) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Act. Thus, it is noted that the A.O on estimated basis, disallowed an amount and levied penalty u/s. 270A. This impugned action of A.O levying penalty cannot be countenanced. We taking note of the explanation of the assessee is satisfied that the explanation given by the assessee during penalty proceedings is bonafide and find that the assessee has disclosed all the material facts to substantiate the explanation offered and therefore, as per sub clause (a) of sub section (6) of section 270A of the Act, we are of the view that this is not a fit case for levy of penalty for underreporting of income and moreover the disallowance of 30% of the expenditure in the quantum order was purely on estimation. Therefore, the penalty made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the assessee is an individual engaged in the business of construction of housing plots. The assessee has sold his land at Madambakkam Village to M/s. Prathishri Properties, one of the group concerns of Asvini Fisheries Pvt. Ltd. during the previous year 2014-15. In connection with search in the case of Asvini fisheries Pvt. Ltd. Group of cases the residential and business premises of the assessee also was searched u/s. 132 of the Act on 27.11.2019. Subsequent to the search, assessment proceedings u/s. 153C were initiated and notice u/s. 153C of the Act was issued for the A.Y 2016-17 on 17.02.2021. Assessment u/s. 143(3) r.w.s 153C of the Act was completed on 21.09.2021 by disallowing 30% of indexed cost of development expenses i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure on estimated basis does not tantamount to underreporting. Hence, no default has been committed to trigger the levy of penalty under the said section. Further, he stated that there has been no concealment of income and have not furnished any inaccurate particulars since the disallowance is based on the estimations made by the A.O. 6. Per contra, the Ld. DR strongly supported the orders of the lower authorities. 7. We have heard the rival contentions, perused the materials available on record and gone through the orders of the authorities below. It is noted that in the quantum assessment, the A.O estimated the disallowance (indexed cost of development expenses) for non production of few vouchers. Therefore, the AO has initiated pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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