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2021 (9) TMI 677 - ITAT MUMBAIPenalty levied u/s 271(1) (c) - Bogus purchases - CIT(A) has restricted the addition @ 25% of Bogus Purchases - Whether for the year under consideration the income tax payable on total income was computed under normal provisions of the Act and not on Book profit u/s 115 JB? - HELD THAT:- As decided by CIT-A the Board itself vide circular F No279/Misc/140/2015/ITJ dated 31/12/2015 has directed that for a period prior to 01/04/16, no penalty is leviable with reference to the additions and disallowances made under normal provisions, where the Income Tax payable on the normal income is less than the book profits u/s 115JB. The same has been upheld as such by the Hon'ble Delhi High Court as well in the case of Nalwa Sons Investment Ltd. [2010 (8) TMI 40 - DELHI HIGH COURT] Thus , on these premises also, the penalty is not maintainable. DR could not controvert the observations of the Ld. CIT (A) with any cogent evidence or information. Accordingly, we find that the Ld. CIT (A) has passed a reasoned order and relied on the judicial decision. Accordingly, we do not find any infirmity in the order of the Ld.CIT(A) and uphold the same and dismiss the grounds of appeal of the revenue.
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