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2019 (5) TMI 771 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance at the rate of 12.5% being gross profit of the bogus purchases - CIT(A) made enhancement of the bogus purchases and directed the AO to add the balance amount of bogus purchases and also imposed penalty - ITAT [2017 (10) TMI 1451 - ITAT MUMBAI] deleted the enhancement made by CIT(A) but sustain the addition @ 12.5% made by AO - HELD THAT:- Tribunal has deleted the addition whatever was enhanced by CIT(A). Hence, the penalty levied by CIT(A) on enhancement vide order dated 27.07.2017 will not survive as the quantum addition has been deleted by the Tribunal. The penalty imposed by CIT(A) was ₹ 28,68,970/-. When these facts were confronted to the learned Sr. Departmental Representative, he could not controvert the above factual findings. After hearing the rival contentions and going through the facts of the case, we are of the view that once the quantum is deleted by the Tribunal, the penalty levied by CIT(A) on enhanced income will not survive. - Decided in favour of assessee.
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