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2023 (1) TMI 475 - AT - Income TaxAddition u/s 68 - assessee booked bogus purchase and sales in the books of accounts in the garb of introducing its own money through sales channel - HELD THAT:- It can be reasonably concluded that assessee entered into fictitious transactions of purchase and sales. We did not find any anomaly in the order of the AO he rightly neutralise the difference amount of profit arisen out of fictitious purchase and sales.We further confirm his action u/s 68 treating the sales receipt as cash credit as defined in sec 68. AO rightly observed that in the garb of sales it is assesses own money which he introduced as sales. In view of the above addition u/s 68 is rightly made and ground raised by assessee are dismissed. Penalty u/s 271(1)(c) - HELD THAT:- In the instant case, in quantum proceedings which were taken up to the ITAT, the Tribunal had recorded a fact that assessee booked bogus purchase and sales in the books of accounts in the garb of introducing its own money through sales channel, which is chargeable to tax u/s. 68 of the I.T. Act, 1961. Further, in quantum proceedings authorities below and ITAT have concurrently arrived at a finding of fact that the claim made by the assessee with regard to its purchase and sales are fictitious for subject assessment year. These findings of fact are not shown to be perverse in any manner. The legal claim made that once a transaction is shown in the books of accounts, it must follow that it is bona fide, is not understood. The transactions shown in the books are found to be false. The assessee has to show the reason why he believed at the time he filed his books, it was true. No such attempt was even made. Facts relevant to confirm the order of penalty has already been discussed in detail vide our order (supra), hence, there is no need to elaborate the facts of the case (as discussed in quantum appeal) again. Relying on the outcome of quantum appeal as decided by us, we dismiss all the grounds raised by assessee in penalty appeal. The assessee has filed inaccurate particulars of income at the time of filing return in order to conceal its income. Thus the provisions of section 271(1)(c) is clearly attracted in the assessee's case While filing the return of income, the assessee failed to offer the said incomes for taxation with a dishonest intention to conceal its income and thus evaded tax. Also during the course of penalty proceedings the assessee has failed to offer any plausible explanation in this regard thus the assessee has failed to make full and true disclosure of the facts while computing its income and filed return of income with inaccurate particulars and thereby concealing its taxable income. - Decided against assessee.
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