Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 94 - AT - Income TaxPenalty levied u/s 271(1)(c) - addition of alleged non-genuine purchases - receipt of information from the Sales Tax Department, Government of Maharashtra that the assessee had obtained accommodation entries through bogus purchase bills from hawala parties - HELD THAT:- Though the assessee had filed the details containing his full explanation, the AO made an addition of ₹ 21,17,152/-, without making any inquiry/verification. In such a situation like the present one wherein the Ld. CIT(A) has estimated the profit @ 17.67% of the total alleged bogus purchases which comes to ₹ 3,74,100/-, We are of the considered view that penalty u/s 271(1)(c) is not leviable. The law that penalty would not be exigible merely because an addition is made on estimate basis was reiterated in CIT v. Raj Bans Singh [2004 (8) TMI 73 - ALLAHABAD HIGH COURT] and CIT v. Ajaib Singh & Co. [2001 (8) TMI 79 - PUNJAB AND HARYANA HIGH COURT] In view of the above factual matrix and position of law we delete the penalty - Decided in favour of assessee.
|