2024 (6) TMI 28
X X X X Extracts X X X X
X X X X Extracts X X X X
....1. 2. Since issues involved in these appeals are common and identical, hence they are clubbed, heard and a consolidated order is passed. For the sake of convenience, we shall take up ITA No. 4473/Mum/2023, A.Y 2009-10 as lead case and facts narrated. The assessee has raised the following grounds of appeal: 1. That on facts and circumstances of the case penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 by ld. A.O. on the basis of defective penalty show cause notice issued and alleging the both different limbs of default prescribed in the said section and partly confirmed by ld. CIT (Appeals) to the extent of Rs. 5,87,413/- in respect of estimated disallowance of purchases being legally untenable thus appellant prays that....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e u/sec 143(2) and U/sec 142(1) of the Act along with questionnaire was issued. In compliance to the notices, the Ld. AR of the assessee appeared from time to time and submitted the details and the case was discussed. Whereas the AO has dealt on the details and has issued notice u/sec 142(1) of the Act to produce the parties along with the purchases bills, ledger accounts, quantitative details and proof of delivery of goods to examine the genuineness of the transactions. In compliance the assessee has submitted the partial details in support of claim of purchases but the AO was not satisfied with the explanations and information and to test check the genuineness of the purchases has issued notice u/sec 133(6) of the Act on the parties and t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....% and on further appeal by the assessee against the CIT(A) order, the Hon'ble Tribunal has restricted the disallowance @8% of alleged bogus purchases. The CIT(A) considering these facts and submissions has restricted the penalty levied and partly allowed the assessee appeal.. Aggrieved by the order of CIT(A), the assessee has filed an appeal with the Hon'ble Tribunal. 6. At the time of hearing the Ld. AR submitted that the CIT(A) erred in partly sustaining the penalty u/s 271(1)(c) of the Act. The Hon'ble tribunal has directed the Assessing officer to restrict the addition on account of bogus purchases estimating @8% of bogus purchases as income and was accepted by the assessee and therefore, the levy of penalty on estimated income cannot ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....assessing officer to delete the penalty and allow the grounds of appeal in favour of the assessee. 8. Since, the grounds of appeal on merits are decided in favour of the assessee, hence the grounds of appeal with respect to validity of penalty notice raised by the assessee becomes academic and are left open. 9. In the result, the appeal filed by the assessee is allowed. ITA No. 4472 & 4470/Mum/2023, A.Ys. 2010-11 & 2011-12. 10. As the facts and circumstances in these appeals are identical to ITA No 4473/Mum/2023, for the A.Y 2009-10 (except variance in figures) and the decision rendered in above paragraphs would apply mutatis mutandis for these appeals also. Accordingly, We allow the grounds of appeal in favour of the assessee. ITA No.....