Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 1094 - ITAT MUMBAIPenalty levied u/s. 271(1)(c) - addition on bogus purchases - addition sustained @8% of the bogus purchases - HELD THAT:- CIT-A correctly deleted the penalty with reference to bogus purchase addition at ₹ 3,83,388/-, as the addition was done on estimated basis. Tax effect in this case is below the limit fixed by CBDT for filing appeals before ITAT. Revenue has tried to make out a case that since the addition was made pursuant to information from sales tax department, this penalty appeal falls in the exception carved out in the CBDT circular regarding appeals arising out of additions made pursuant to information from outside agencies. We are of the opinion that this plea is not tenable inasmuch as once revenue accepts that penalty is levied on outside agency information, the penalty levied will have no legs to stand. Revenue appeal dismissed.
|