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2021 (9) TMI 838 - AT - Income TaxPenalty u/s 271(1)(c) - Estimation of income on bogus purchases - HELD THAT:- AO has admitted that the assessee alternatively made purchases from the parties but only some profit element is not disclosed. AO by levying the penalty has nowhere proved purchases are bogus because the assessee has filed explanation that it had made purchases from registered dealers and also produced bills and vouchers along with payment details and the payments are made through account payee cheques - assessee is able to produce stock tally and also the transactions which are recorded in the book of accounts but could not be verified as the assessee was unable to produce documentary evidences of transportation of goods. In identical facts Nokia India Pvt. Ltd [2012 (7) TMI 35 - DELHI HIGH COURT] has already decided the issue that in the case of estimation of bogus purchases penalty under section 271(1)(c) of the cannot be sustained - Decided against revenue.
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