Income determined on estimate basis, penalty u/s 271(1)(c) cannot be imposed

Brief Facts: 1. The assessee is engaged in trading of cement. The A.O., during the course of assessment proceedings, valued the closing stock on the basis of last purchase bill, the differential of stock amount between assessee’s and A.O.’s calculation being Rs. 2,40,381/-. The assessee agreed for the aforementioned addition. 2. The A.O., in relation to the said addition, imposed penalty u/s 271(1)(c) of the Income Tax Act, 1961, amounting to Rs. 45,100/- @ 100% of tax sought to be evaded. 3. The Ld. CIT(A) upheld the penalty. Assessee Contention: No one appeared before the ITAT Be...