…Firstly, it needs to be appreciated that all the particulars from which income has to be determined are on record. Secondly, when the Assessing Officer noticed that the purchase of flowers were to the tune of Rs.30.59 lacs, the assessee furnished the breakup and satisfied the Assessing Officer that actual purchases which were meant for sales amounted only to Rs.14.62 lacs. Thus, it is not a case of inflation of purchases as contended by the learned Departmental Representative. This aspect itself establishes the bonafides of the assessee. Thirdly, the total sales of the assessee amounted to Rs.2.59 crores including export sales of Rs.89.24 lacs. The net profit amounted to Rs.48.44 lacs. Considering this volume of business and profitability, it cannot be the intention of the assessee to conceal a meager income of Rs.3.76 lacs which too is not the correct concealed income, if it can be so called. At best, this appears to be the case of sheer oversight to separate out the trading activity from such a huge volume. Fourthly, yes, there can be a penalty on estimated income. But it can be so only when the estimate is fair and is based on some cogent material on record. In the instant case, the income itself is arrived at on the basis of an arithmetical formula which cannot be considered to be fair. Therefore, on any count, we do not consider this to be a fit case for levy of concealment penalty. We cancel the same.
