FALCON SUBMERSIBLE PVT. LTD.,RAJKOT-GUJARAT vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-5, RAJKOT-GUJARAT

ITA 331/RJT/2014Status: DisposedITAT Rajkot08 July 2019AY 2006-073 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the existence of unrecorded sales was undisputed. While the revenue estimated 7% profit, the Tribunal gave the benefit of doubt to the assessee and restricted the penalty to be quantified on a net profit of 4.89% of the unrecorded sales.

What were the facts?

The assessee challenged a penalty imposed under Section 271(1)(c) of the Income Tax Act for AY 2006-07, related to additions on unaccounted sales. The penalty was based on the profit element of these sales.

What were the issues?

The primary issue was the quantification of penalty for concealment of income arising from unrecorded sales, specifically concerning the estimation of profit on such sales.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “RAJKOT” BENCH, RAJKOT

Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD

For Appellant: Mr. Mehul Ranpura, A.R, Mr. Praveen Verma, Sr. D.R

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax(Appeals)-IV, Rajkot (‘CIT(A)’ in short), dated 25.03.2014 arising in the penalty order dated 02.03.2012 passed by the Assessing Officer (AO) under s. 271(1)(c) of the Income Tax Act, 1961 (the Act) concerning AY 2006-07. ITA No. 331/Rjt/2014 [Falcon Submersible Pvt. Ltd. vs. ACIT] A.Y. 2006 -07 - 2 -

2.

As per grounds of appeal, the assessee has challenged

The order continues below.

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