Penalty cannot be levied on the basis of estimated additions

Laxman Trimbak Gule Vs ITO (ITAT Pune) In the present case, the Assessing Officer estimated the disallowance at 50% being Rs.9,90,685/- and initiated penalty proceedings u/s.274 r.w.s 271(1)(c) of the Act. It is a basic need of the provisions of law that definite finding is required to be recorded by the Assessing Officer for reaching to a conclusion with regard to concealment of income or furnishing of inaccurate particulars of income and without any such findings, there cannot be any question of imposition of any penalty u/s.271(1)(c) of the Act. We find that the Ld. CIT(Appeals) relying on ...