The levy of penalty was not on estimated basis but based on confessional statement of the Assessee and the supplier post the search action is based on the incriminating evidence which was revealed on the proceedings pursuant to search and seizure action that led to the addition and hence the levy of penalty is justified. However, the penalty shall be levied to the extent of tax sought to be evaded relating to the additions finally sustained by Tribunal (ITA. Nos 78, 79 of 2016 dt. 09-01-2018) (AY. 2007-08 , 2008-09)
Dr. P. Sasikumar .v. CIT (2018) 163 DTR 358 /301 DTR 478(Ker)(HC.)
S. 271(1)(c) : Penalty – Concealment – Penalty imposed on addition made on the basis of confessional statement of assessee and supplier after search was held to be valid.