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2018 (5) TMI 756 - AT - Income TaxPenalty u/s 271(1)(c) - booking bogus bills of unworthy supplies to inflate expenses - Held that:- In the instant case, the Revenue has established beyond any reasonable doubt that the assessee was indulged in booking bogus bills of unworthy supplies to inflate expenses. Tell-tale evidence of intermediary i.e. Shri Madanlal L. Shah and power of attorney holder of the assessee and confirmation thereof in cross-examination of intermediaries coupled with lack of proof towards delivery of purchases and clouded and suspicious bank transactions recorded to this effect leaves us in any manner of doubt that the assessee had deliberately and willfully subverted real source and character of the transactions. The assessee also prevented Revenue from knowing real source of supply and whereabouts of the supplier of the alleged goods purchased, if any. In the circumstances, appellate authorities were left with no option but to estimate a plausible overstatement of expenditure on purchases, and thereby understatement of profits. In these gross facts as recorded in the quantum proceedings, it is not a matter for consideration as to whether there was any concealment resorted by the assessee or not. Fact of under-statement of income is discernible. Only matter for consideration is extent of quantification of understatement of income. ITAT as a final fact finding authority has lent objectivity to such estimation. Thus, quarrel about quantum of estimated undisclosed income also does not survive any more. No rational ground for granting latitude to the assessee in the matter of relief pleaded. - Decided against assessee.
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