Section 271(1)(c), read with section 145, of the Income-tax Act, 1961 - Penalty For concealment of income (Estimation of income)

IT : Where no return had been filed by assessee and income was assessed on estimate basis by revenue, no penalty could be levied for concealment of income
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[2015] 55 taxmann.com 258 (Gujarat)
HIGH COURT OF GUJARAT
Income-tax Officer
v.
Bombaywala Readymade Stores*
K.S. JHAVERI AND K.J. THAKER, JJ.
TAX APPEAL NO.152 OF 2005
NOVEMBER  3, 2014
Section 271(1)(c), read with section 145, of the Income-tax Act, 1961 - Penalty - For concealment of income (Estimation of income) - During search excess stock was found on physical verification as against book stock worked out as on date of search - Assessee did not file return of income for relevant year in which search had been conducted - Assessing Officer completed assessment for relevant assessment year on basis of materials available with him - Penalty proceedings were initiated for concealing particulars of income - Whether since no income had been filed by assessee and income was assessed on estimate basis by revenue, no penalty under section 271(1)(c) could be levied for concealment of income - Held, yes [Para 6] [In favour of assessee]
K.M. Parikh, Advocate for the Appellant. J.P. Shah and Manish J. Shah, Advocates for the Respondent.