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2021 (5) TMI 377 - AT - Income TaxPenalty levied under 271(1) - Estimation of income on bogus purchases - HELD THAT:- Disallowance has been made on an estimated basis on account of the non-production of suppliers before the assessing officer. The purchase vouchers were duly produced. No notice to the alleged bogus supplier has been issued by the AO. In these backgrounds in our considered opinion assessee cannot be visited with the rigours of penalty under section 271(1)(c) of the Act. As a matter of fact on many occasions on similar circumstances in quantum proceedings the disallowance itself has been deleted, on the touchstone of case of Nikunj Eximp Enterprises Pvt. Ltd. [2013 (1) TMI 88 - BOMBAY HIGH COURT] - assessee cannot be said to have been guilty of concealment or furnishing of inaccurate particulars of income. In this regard we draw support from the decision of Hindustan Steel Ltd. Vs. State of Orissa [1969 (8) TMI 31 - SUPREME COURT] where in it was held that the authority may not levy the penalty if the conduct of the assessee is not found to be contumacious. We set aside the order's of Ld. CIT-A and delete the levy of penalty. - Decided in favour of assessee.
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