TMI Blog2020 (11) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... hat penalty u/s 271(1)(c) is not leviable. The law that penalty would not be exigible merely because an addition is made on estimate basis was reiterated in CIT v. Raj Bans Singh [2004 (8) TMI 73 - ALLAHABAD HIGH COURT] and CIT v. Ajaib Singh Co. [2001 (8) TMI 79 - PUNJAB AND HARYANA HIGH COURT] In view of the above factual matrix and position of law we delete the penalty - Decided in favour of assessee. - ITA No. 2283/MUM/2019 - - - Dated:- 2-11-2020 - Shri Mahavir Singh (Vice President) And Shri N.K. Pradhan (Accountant Member) For the Assessee : Mr. Mehul Shah, AR For the Revenue : Mr. R. Bhoopathi, DR ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the assessee. The relevant assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Maharashtra that the assessee had obtained accommodation entries through bogus purchase bills from hawala parties, the AO made an addition of ₹ 21,17,152/-. In appeal filed by the assessee, the Ld. CIT(A) restricted the disallowance to 17.67% of the alleged bogus purchases of ₹ 21,17,152/- which comes to ₹ 3,74,100/-. The reasons given by the Ld. CIT(A) vide order dated 29.01.2016 are as under : To sum up, it is held that in many such bogus billing cases, it is presumed that assessee might have procured bills from grey market and to cover such purchases he would have taken bogus bills. In view of the above facts, the purchases are held to be not bogus but have been made from the parties other than those mentioned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e only to ascertain the embedded profit in such transactions executed by the appellant involving recording of accommodation entries in the books of the appellant. Adopting certain percentage to work out the profit does not wipe away the fact that appellant has obtained bogus bills and made false entries in the books of account of the appellant at higher prices mentioned in the alleged bogus purchase bills with the sole motive of inflating business expenses in the guise of purchases and lowering taxable business income while the purchases are made from other sources at lower prices. The very fact that the appellant recorded in the books purchases based on bogus purchase bills obtained from the parties identified as hawala dealers as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Shri Vijay Shah, CA authorized representative of the assessee, appeared and filed details from time to time. The assessee is importer trading in plastic goods. The assessee has shown Net Profit of ₹ 6,68,028/-. Apart from the details asked to submit as per notice 142(1), vide order sheet dated 31.01.2014 17.02.2014, Assessee was asked to submit the details of sales bills, purchase bills and prove the genuineness of the transaction of M/s. Jigar Enterprises M/s. Niddish Impex Pvt. Ltd. He is also requested to produce the proof payment of transport bills etc. In response AR vide submissions dated 31.01.2014 17.02.2014 filed the details of purchases made from M/s. Jigar Enterprises M/s. Niddish Impex. He is also submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BILL NO. DATE AMT 25/NIPL 06/01/2009 3,12,00/- B. The said purchases of goods are mainly sold to M/s. Vardhaman Enterprises and other parties C. We have made the payment for the purchases made from the above party as follows by payee's a/c cheque only : a. Jigna Enterprises : BANK NAME CHEQUE NO. DATE AMT PUNJAB AND MAHARASHTRA CO-OP BANK LTD. 261392 27/08/2008 1,17,916/- PUNJAB AND MAHARASHTRA CO-OP BANK LTD. 261396 01/09/2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as we have all the evidence to prove that we have made genuine purchase of goods, as there is corresponding sales. G. Our books of accounts are duly audited u/s 44AB of the Income Tax Act, 1961. We also have the ledger confirmation of the party duly signed by them along with their PAN nos. H. There are different types of Hawala Dealers under the M-VAT Act, 2002 and other High Court decisions in our favour : As per Annexure I II In our case as the Sale is identifiable, the question of disallowance does into arise as if there is a sale, there must be a corresponding purchase of goods . The above condition is fulfilled in our case therefore, the question of disallowance does not arise. 6.1 We observe that though the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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