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2022 (4) TMI 101 - AT - Income TaxLevying penalty u/s.271(1)(c) - addition towards suppression of sale and addition u/s. 68 of bogus trading liability - HELD THAT:- Addition initially made by the Assessing Officer, had pursuant to the matter being set-aside by the Tribunal to the file of the Assessing Officer for fresh adjudication [2018 (1) TMI 1678 - ITAT RAIPUR] does no more survive, as the explanation of the assessee as regards both of the issues was accepted by the AO in the course of the set-aside proceedings, therefore, penalty that was imposed u/s. 271(1)(c) of the Act as regards the said issues have to meet the same fate and has to be knocked down. Penalty u/s.271(1)(c) on account of ad hoc disallowance out of manufacturing expenses for want of proper vouchers and necessary verification, we are of the considered view, that as the said disallowance was made on an estimate basis and not on the basis of any concrete evidence which would irrefutably prove to the hilt raising of a bogus claim of expenditure by the assessee, therefore, no penalty u/s. 271(1)(c) of the Act as regards the same can be sustained. We vacate the penalty imposed by the Assessing Officer u/s. 271(1)(c) of the Act. Appeal of assessee allowed.
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