TMI Blog2017 (8) TMI 1667X X X X Extracts X X X X X X X X Extracts X X X X ..... ving Equipment Service Corporation [ 2017 (5) TMI 474 - ITAT MUMBAI] , has taken a view that when a assessee made a bona fide claim coupled with documentary evidence but the same remained inconclusive for want of confirmation from the suppliers and the Assessing Officer has not made further inquiry to verify the correctness of the confirmation, the imposition of penalty is not justifiable. Thus, respectfully following the decisions of the co-ordinate Benches of this Tribunal, we find that the penalty made on estimated disallowance is not sustainable. As a result, the penalty levied is set aside and the appeal of the assessee is allowed. - ITA No. 1261/Mum/2017 - - - Dated:- 30-8-2017 - Shri G S Pannu, Accountant Member And Shri Pawan Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 07.08.2015, stated that it has produced various documents like invoices issued by the supplier, ledger accounts, bank statements to show that payments have been made by cheques. It also stated that its books of accounts were also audited u/s. 44AB of the I T Act. However, the reply was not accepted by the Assessing Officer and he inferred that the assessee failed to establish the genuineness of the transaction and that it also did not contest the status of the party as being a hawala trader. The Assessing Officer levied penalty @100% of the tax sought to be evaded and levied penalty of ₹ 89,580/-. On appeal, the CIT(A) confirmed the action of the Assessing Officer. Aggrieved, the assessee is in appeal before us. 3. We have hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estigation) that during the impugned assessment year, the assessee made purchases from the dealers, who were shown as hawala dealers in the website of the Sales tax Department of State of Maharashtra. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has made purchases amounting to ₹ 23,19,151/- from four parties viz. Nisha Enterprise, Dhanera Metal Corporation, Manish Industrial Corporation and Shidhsila Tradelinks Private Ltd. The Assessing Officer, on the basis of the gross profit percentage, disallowed 12.5% out of the total purchases made from the four such hawala dealers. Admittedly, the addition was made on estimation basis. The Co-ordinate Bench of the Ahmedabad Tribunal in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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