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2020 (10) TMI 1080 - AT - Income TaxPenalty u/s 271(1)(c) - information from the Sales Tax Department, Government of Maharashtra about bogus purchases made by the assessee - HELD THAT:- Instead of disallowing the entire purchases AO had only added the profit element embedded in such purchases which clearly suggests that the assessee, in fact, had made purchases, though, the source of such purchases may not have been established for whatever may be the reason. Even assuming that the assessee was unable to prove the source of such purchases, what might have escaped assessment is only the profit element embedded in such purchases. For that reason only, the Assessing Officer has estimated the profit element embedded in such purchases @ 12.5% and added back to the income of the assessee. Additions of such estimated profit by no means would lead to an inference that the assessee has either furnished inaccurate particulars of income or concealed its income. That being the case, the provisions of section 271(1)(c) cannot be pressed into action - Decided in favour of assessee.
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