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Prime facie decisions are not maintainable in court of law.
Prime facie decisions are not maintainable in court of law.
Judgement passed on prima facie i.e on first impression basis and not on facts & circumstantial basis are not appreciated to be maintained in the court of law. Therefore, difference between the gross reciept is rightly added to Mr. Sunil Rajendranath Gupta, Surat but penalty levied for same addition isn't maintainable as it was initiated merely for non-compliance by assessee.-500249
1. Assessee is Mr. Sunil Rajendranath Gupta, Surat an indivitual filed its income return declaring its total income at Rs.7,12,362.
2. On assessment AO determined an amount of Rs.10,49,871 from the difference between the gross reciept from contract work.
3. AO added the difference to the income of assessee and also initiated the penalty on addition.
4. CIT(A) confirmed addition along with the penalty on assessee.
5. HELD- ITAT maintained the addition on assessee but deleted penalty for the same as it was initiated merely on the ground that there was non-compliance by assessee on addition and thus, he concealed or furnished inacurate particulars of the income.
Case Reference - Shambhu Dayal Vs. ACIT
