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2023 (4) TMI 678 - AT - Income TaxPenalty u/s 271(1)(c) - furnishing of inaccurate particulars of income - Estimation of income on bogus purchases - HELD THAT:- Assessing Officer had made addition of entire bogus purchases, however, did not doubt the sales made against such purchases. We observe that the Tribunals in various decisions have held that where sales are not disputed, entire alleged bogus purchases cannot be disallowed and only the gross profit on the alleged purchases to be disallowed. After taking into consideration the various decisions of the Tribunal that no penalty under section 271(1)(c) is leviable on estimated additions and also after taking into consideration the decision of Hon’ble Rajasthan High Court in the case of CIT vs Krishi Tyre Retreading & Rubber Industries [2014 (2) TMI 21 - RAJASTHAN HIGH COURT], case of CIT vs Sangrur Vanaspati Mills Ltd [2008 (2) TMI 285 - PUNJAB AND HARYANA HIGH COURT] and the decision of Subhsh Trading Co Ltd. [1995 (11) TMI 37 - GUJARAT HIGH COURT] we direct the Assessing Officer to delete the impugned penalty levied on estimated addition. Therefore, the appeal of the assessee is allowed.
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