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2021 (9) TMI 761 - AT - Income TaxLevy of penalty u/s.271(1)(c) - estimated addition made on account of bogus purchases - HELD THAT:- Addition towards bogus purchases has been made only on estimated basis. Hence, no penalty u/s.271(1)(c) on the same would survive in the eyes of law. Moreover, we find that for the A.Y.2009-10, the gross profit shown by the assessee on total transactions is 29.70% which is much more than 12.5% profit estimated by the Tribunal in the quantum proceedings. We find that the Tribunal has directed the ld. AO to adopt 12.5% less gross profit already declared by the assessee, then there would be no addition that could be effectively survive in the transaction. Hence, we hold that it is not a fit case for levy of concealment penalty u/s.271(1)(c) of the Act. Accordingly, the penalty is hereby directed to be deleted for the A.Y.2009-10. As far as the A.Y.2011-12 is concerned, we find that the GP rate already declared by the assessee is 28.3% which is also much more than the percentage directed by the Tribunal to be added. Hence, we hold that it is not a fit case for levy of concealment penalty u/s.271(1)(c) of the Act. Accordingly, the penalty is hereby directed to be deleted for A.Y.2011-12. Appeals of the assessee are allowed.
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