2009 (7) TMI 1265 - AT - Income Tax

Summary

Issues involved: Appeal against penalty u/s 271(1)(c) for furnishing inaccurate particulars of income for Assessment Years 1996-97 & 1997-98.

Assessment Year 1996-97:
The Assessing Officer made additions for bogus purchases, confirmed by CIT(Appeals), leading to penalty u/s 271(1)(c). Tribunal sustained addition at 25% of bogus purchases, following precedent where penalty was deleted for estimated additions. Penalty of Rs. 3,23,040/- for this year was deleted.

Assessment Year 1997-98:
Additions for payments on bogus purchases were partially deleted by Tribunal, rendering the penalty baseless. Penalty of Rs. 1,31,039/- for this year was deleted.

The Tribunal allowed the appeals of the assessee for both years, setting aside the penalties imposed.