No penalty on additional income admitted though there was no evidence

ACIT Vs Deccan Jewellers Pvt. Ltd. (ITAT Visakhapatnam) We find from the orders of the lower authorities that the basis for additional income was only estimation but not supported by any evidence. Even the department failed to substantiate the industry average of purification loss with authenticated documentary evidences. The assessee submitted that the additional income was admitted only to purchase peace and to avoid litigation with the department even though there was no evidence. The claim of loss was found from regular books of accounts maintained by the assessee which were duly accounted...