TMI Blog2020 (5) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri S.N. Puranik, the ld. AR and the penalty imposed and as confirmed by the CIT(A), in our opinion, is not justified. - Decided in favour of assessee. Bogus Hawala purchases - purchases from grey market - CIT(A) held that the assessee is not able to substantiate the genuineness of alleged purchases restricted the said addition to 10% to arrive at such conclusion - HELD THAT:- We find this Tribunal on similar issues by placing reliance in the case of M/s. Chhabi Electricals Pvt. Ltd. [ 2017 (6) TMI 514 - ITAT PUNE] confirming the addition at 10% on the bogus Hawala purchases. Therefore, considering the same, we find no infirmity in the order of CIT(A) and it is justified. Thus, grounds raised by the assessee fails and are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Shri S.P. Walimbe, the DR did not dispute the same. 5. We find that the AO recorded its satisfaction in para 2.9 of the assessment order that the assessee filed inaccurate particulars and initiated penalty proceedings by issuing show caused notice u/s. 271(1)(c) of the Act for filing inaccurate particulars of income which is evident in the last page of assessment order. We note that the AO imposed penalty of ₹ 6,07,140/- u/s. 271(1)(c) for concealment of income which is evident from para 5 of penalty order. Therefore, the imposition of penalty is contrary to the findings of AO in assessment proceedings and in view of the decision of Hon‟ble Jurisdictional High Court in the case of Commissioner of Income Tax Vs. Samson Perin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon‟ble High Court of Bombay (supra), the order of CIT(A) in confirming the penalty imposed by the AO u/s. 271(1)(c) of the Act is quashed. Grounds raised by the assessee are allowed. 8. In the result, the appeal of assessee is allowed. ITA No. 574/PUN/2019, (A.Y. 2012-13) 9. In this appeal, the assessee raised three grounds but however the only effective issue remains for our consideration in respect of confirming the addition at 10% as against the 20% made by the AO in the facts and circumstances of the case. 10. Heard both parties and perused the materials available on record. The assessee is a partnership firm and is engaged in the business of manufacturing and trading of steel and wooden furniture, agricult ..... X X X X Extracts X X X X X X X X Extracts X X X X
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