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No penalty for concealment if addition is based on estimation of Gross Profit
Case Law Details
- Case Name
- Dy. Commissioner of Income Tax, Circle- 1 V/s. M/s Krishna Art Silk (ITAT Ahemdabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2004- 05
- Courts
- ITAT Ahmedabad
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Vide a penalty order u/s 271(1)(c) dated 27-03-2009, it was held that the assessee has concealed the income of Rs.8,16,617/- which was taxed on account of estimation of profit. The First Appellate Authority has expressed that since the addition was in respect of Gross Profit and work-in progress was based upon certain estimation, therefore, it was not a case of concealment, hence, deleted the penalty following the judgment of Hon’ble jurisdictional High Court in the case of CIT v. J.H. Parabia (Transport) P. Ltd. (2006) 284 ITR 361 (Guj).
INCOME TAX APPELLATE TRIBUNAL, AHM...
