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2022 (6) TMI 692 - AT - Income TaxPenalty u/s 271(1)(c) - Bogus purchases - HELD THAT:- As purchases has been held to be bogus in view of the information received from Sales Tax Department of Maharashtra and the assessee failed to substantiate those purchases. Even the efforts made by the Assessing Officer for verification of those purchases by way of issue notice under section 133(6) and 131 of the Income Tax Act could not succeed as those parties were not traceable. The assessee was duly confronted with those facts and was asked to produce those purchase parties, however the assessee failed to do so. In the circumstances both the Ld. CIT(A) and ITAT has confirmed disallowance of part of the bogus purchases. In such circumstances, it is not a disallowance of expenses merely an estimate basis, but it is a disallowance in respect of a wrong committed by the assessee, which has resulted in furnishing of inaccurate particulars by the assessee. In our opinion, the Ld. CIT(A) has passed a reasoned order and we do not find any infirmity in the same. Accordingly, we uphold the both the impugned orders of the Ld. CIT(A) and dismiss the grounds raised by the assessee
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