Law:

Section:

Section 158BFA of the Income-tax Act, 1961 - Block assessment in search cases - Levy of interest and penalty in certain cases - No penalty was leviable under section 158BFA where alleged undisclosed income was computed on basis of estimation [In favour of assessee] The Assessing Officer levied penalty under section 158BFA(2) upon the assessee rejecting his contention that the alleged undisclosed income was purely on the basis of estimation and no such documents or evidence to that effect was found during the course of search. On appeal, the Commissioner (Appeals) deleted the penalty. The Tribunal upheld the order of the Commissioner (Appeals). Held that each item was examined, thoroughly and in detail, by the Commissioner (Appeals) as well as the Tribunal and by a reasoned order, both came to a conclusion that addition was based on estimation only. A fact or allegation based on estimation cannot be said to be correct only; it can be incorrect also. Therefore, in the facts and circumstances of the case, penalty was wrongly imposed by the Assessing Officer. CASES REFERRED TO Union of India v. Dharmendra Textile Processors [2008] 306 ITR 277/174 Taxman 571 (SC) (para 7) JUDGMENT Narendra Kumar Jain-I, J. - Heard the learned counsel for the appellant. 2. The Revenue has preferred this appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), against the order dated July 27, 2007, passed by the Income-tax Appellate Tribunal, Jaipur Bench "B", Jaipur, dismissing the appeal of the Revenue and affirming the order of the Commissioner of Income-tax (Appeals)-III, Jaipur, dated March 22, 2006, deleting the imposition of penalty of Rs. 2,89,217, by the Assessing Officer under section 158BFA(2) of the Act. 3. The facts of the appeal, in brief, are that a notice was issued to the assessee-respondent by the Assessing Officer on September 12, 2005, to show cause as to why penalty under section 158BFA(2) of the Act may not be imposed for concealing the income of Rs. 4,82,028 in the following heads : Rs. (i) IUI test 44,000 (ii) Plying of car 15,000 (iii) Household expenses 4,23,028 4,82,028 4. The assessee filed his reply dated September 19, 2005, and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492