Case Law Details
Raj Kumar Aggarwal Vs ITO (ITAT Delhi)
The Hon’ble Punjab & Haryana High Court in the case of Hari Gopal Singh Vs. CIT (258 ITR 85) held that when addition was made on estimation basis that by itself does not lead to the conclusion that the assessee either concealed the particulars of income or furnished inaccurate particulars of such income.
Similar view has been taken by the Hon’ble Delhi High Court in the case of CIT Vs. Aero Traders Pvt. Limited (322 ITR 316), wherein the Hon’ble High Court affirm the order of the Tribunal in holding that the estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. The ratio of the above decisions applies to the facts of the assessee’s case. Thus, respectfully following the above decisions, the AO is directed to delete the penalty levied u/s 271(1)(c) of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-33, Delhi dated 22.10.2019 for the AY 2013-14 in sustaining the penalty levied u/s 271(1)(c) of the Act.
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