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2020 (5) TMI 47 - AT - Income TaxAddition u/s 68 - Bogus outstanding balance pertaining to the sundry creditors - HELD THAT:- Genuineness of the same was not disproved by the assessing officer. In the light of the above facts and circumstances, we observed that the assessing officer has incorrectly applied section 68 of the act in respect of outstanding balance of sundry creditors reported by the assessing officer. In addition to above, the assessee has clearly demonstrated the outstanding balance in the name of said parties have been squared off in the subsequent year by payment from account payee cheques as demonstrated in the paper book which was not disputed by the assessing officer. Considering the above facts and circumstances, we are not inclined with the decision of ld. CIT(A), therefore, the appeal of the assessee is allowed. Levy penalty u/s. 271(1)(c) - quantification of purchases & sales and estimated addition to profit to the extent of ₹ 15% only - HELD THAT:- It is noticed that assessing officer has not confronted the assessee to produce the parties who were not found at the given addresses. The Co-ordinate Bench of the ITAT had deleted the additions except sustaining the addition on estimated basis to the extent of ₹ 15%. Considering the facts and sustaining of additions on merely estimated basis, we observe that given circumstances it is not a fit case to levy penalty u/s. 271(1)(c) of the act, therefore, penalty levied in this case is deleted. Accordingly, the appeal of the assessee is allowed. Estimation of gross profit @ 3.82% as averages on last three years - HELD THAT:- As during the course of survey against book value of goods the value of goods on physical verification was found to the extent of ₹ 30,75,989/-. In spite of giving a number of opportunity at the level of assessing officer and at the level of CIT(A) the assessee could not produce any evidence to reconcile differences, therefore, we do not find any merit in this appeal of the assessee, therefore, the same stands dismissed.
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