|COURT:||ITAT Agra, Third Member|
|CORAM:||Bhavnesh Saini (JM), Pramod Kumar (AM), R. S. Syal (AM)|
|CATCH WORDS:||concelment Penalty|
|DATE:||August 9, 2018 (Date of pronouncement)|
|DATE:||October 5, 2018 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|S. 271(1)(c) Penalty: Law explained on whether penalty can be imposed where (i) income is added or disallowance is made on estimate basis, (ii) books of account cannot be produced for reasons beyond control, (iii) disallowance is made as per retrospective insertion of s. 37(1) Explanation & (iv) allegation regarding concealment vs. furnishing inaccurate particulars is vague & uncertain|
What follows from the above discussion is that where income is estimated or disallowance of expenses i made on estimate basis, there can be no penalty. The raison d’etre for non-imposition of penalty in both the situations is that there is a lack of precision as to concealment of income or furnishing of inaccurate particulars of income. It is only an estimation shorn of any certainty or accuracy.