Penalty not sustainable when addition itself is on a weak footing

Bharat Mahesh Malhotra Vs ITO (ITAT Mumbai)

We note that AO has noted that during the course of survey, assessee has agreed for declaration of Rs. 6 lacs as additional income. In the profit and loss account, it has duly declared, the said credit of Rs. 6 lacs. However, after adjustment of the expenses profit was Rs. 2,34,576/-. In these facts, AO of the opinion that assessee has not declared what he has agreed under survey and he added Rs. 6 lacs. Firstly, we note that this is not a case of concealment or furnishing of inacc

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