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Judgment
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2016-17, arises against the Commissioner of Income Tax (Appeals)[in short, the “CIT(A)”], Delhi-26’s DIN and order No .ITBA/APL/S/250/2025-26/1081817061(1), dated 16.10.2025 involving proceedings under section 271(1)(c) of the Income-tax Act, 1961; hereinafter referred to as ‘the Act’.
Heard both the parties. Case file perused.
Coming to the assessee’s sole substantive grievance raised in the instant appeal herein, we note at the outset that he is aggrieved against both the learned lower authorities’ respective findings in the Assessing Officer’s order dated 28.08.2024, levying section 271(1)(c) penalty of Rs. 3,49,546/- which stands upheld in the lower appellate discussion.
That being the case, we sought to know the exact quantum addition(s) made in the assessee’s hands. We are fairly informed in light of the learned Assessing Officer’s penalty order that he had assessed/ rather estimated GP @ 1.05% to 3% on alleged unaccounted sales as well as Rs. 4.4 lakhs going by some loose sheets only which had not been substantiated although the same appears to have attained finality for want of appeal filed at his behest. We are of the considered view that the impugned section 271(1)(c) concealment penalty on both these issues i.e., estimation as well as unsubstantiated alleged incriminating material does not deserve to be sustained. The Revenue’s vehement submissions in support thereof stand rejected in very terms. The impugned penalty is hereby deleted.
This appeal of the assessee is allowed in above terms.