Section 158BFA of the Income-tax Act, 1961—Block assessment—Penalty - Penalty deleted as addition of undisclosed income was due to determination of income on estimate basis rather than on account of deliberate suppression of income by the assessee.

Facts: Whether ITAT is justified in deleting the penalty imposed u/s. 158BFA (2) on the basis that the undisclosed income has been determined on estimate basis without appreciating that the estimation of undisclosed income was based on the material seized during the course of search at the premises of the Assessee?

Held, that the addition of undisclosed income was due to determination of income on estimate basis rather than on account of deliberate suppression of income by the assessee. In our opinion, Tribunal's finding to delete penalty in this regard is proper and sound. - CIT V/s BAGGA DISTILLERIES HYDERABAD P. LTD. - [2018] 1 ITCD Online 376 (AP&T)