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TMI Blog2025 (4) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2008-09. 2. The assessee has raised the following grounds of appeal: "1. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(A) has erred in passing ex-parte order without giving reasonable and sufficient opportunity of being heard. 2. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in dismissing the appeal without passing speaking order. 3. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of Assessing Officer in levying penalty of Rs. 11,35,434/- u/s. 271(1)(c) of the I.T. Act, 1961. 4. It is therefore prayed that penalty levied by the assessing officer and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of labour parties in original submission and in submission in response to show cause. In case of weaving job work labour expense parties namely M/s. Chrnni Fashions, M/s. Gandhi Traders, M/s. Heena Weaving Works, Raj Synthetics, Gokani Industries, Nandan weaving Works, S.S. Fabrics, M/s. Suchitra Weaving Works and in the case of purchase parties namely M/s. Vaibhav Prints United Industries, submission given by Assessee was found fake, manipulated and misleading. In case of creditors also the AO observed that the Assessee submitted altered accounts as compared to accounts submitted originally. No attempt was made by the appellant to rubut the allegations either during the assessment proceedings or in appeal in spite of repeated opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantum of disallowance was restricted by Tribunal on estimated basis: "...On careful consideration of facts, and having regard with nature of payments and peculiar circumstances, we are of the opinion that it would be interest of natural justice, judicial pronouncements discussed and cited above by the learned counsel for the assessee and considering the turnover is below Rs. 40 lakhs, the disallowance of all payments be restricted to 8% of total turnover. The AO is directed to recalculate the disallowance in respect of disallowance of Rs. 18,27,989/- made under section 40A(3)(a) and disallowance of Rs. 15,45,212/- under section 40A(3)(b) of the Act totaling to Rs. 33,73,201/-. These grounds of appeal are therefore, partly allowed. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of assessee is determined on estimate basis then no penalty under Section 271(1)(c) can be imposed for concealment and furnishing of inaccurate particulars of income. 14. In the case of Income-tax Officer vs. Sunil Bhagwandas Vorani (HUF) [2024] 169 taxmann.com 23 (Mumbai-Trib.)[22-07-2024], the ITAT held that penalty u/s. 271(1)(c) is not attracted where addition is made on estimate basis. 15. In the case of AKM Resorts vs. ACIT [2025] 171 taxmann.com 685 (Chandigarh-Trib.)[13-02-2025], the ITAT held that where additions to assessee's income were made by Assessing Officer based on application of estimated rate of NP on gross receipts following rejection of books of account, penalty could not be sustained under section 271(1)(c) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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