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TMI Blog2024 (11) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... red to as "Act"] for the Assessment year [A.Y.] 2010-11, wherein learned CIT(A) has confirmed the penalty order dated 27.03.2018 passed u/s. 271(1)(C) of the Act. 2. The brief facts related to the appeal state that assessee filed its return of income on 15.10.2020 for A.Y. 2010-11, declaring total income of Rs. 45,26,910/-. The return was processed u/s. 143(1) of the Act. Subsequently, the case was reopened, on the basis of information received from the sales tax department, Mumbai regarding bogus purchases of Rs. 84,18,995/- made by the assessee from Hawala entry provider during F.Y. 2010-11. The assessment was assessed u/s. 143(3) r/w 147 of the Act vide order dated 05.03.2015, assessing total income of Rs. 1,30,27,405/-, thereby making ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 (A.Y. 2010-11), which is part of assessee's paper book at pages from 36 to 57 and submitted that the Tribunal has restricted the addition to 12.50% of bogus purchases only. 8. Learned DR has vehemently supported the impugned order. 9. After having gone through the entire material on record, we find that the relevant part of ITAT order dated 21.03.2024 in ITA No. 3885/MUM/2023 (A.Y. 2009-10), in Jatin enterprises V ACIT-19(2), vide para 5, reads as under: "5. The Hon'ble Rajasthan High Court in the case of CIT vs. Krishi Tyre Retreading and Rubber Industries reported as 360 ITR 580 has held that where addition is made purely on estimate basis, no penalty u/s. 271(1)(c) of the Act is leviable. Similar view has been expressed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts are brought on record that any income has been concealed by the assessee or the assessee has furnished inaccurate particulars. It is because of the disallowance of the of the expenditure the total amount representing total income is enhanced to the extent of disallowance. Conditions which are to be fulfilled before section 271(1)(c) is attracted do not exist." 6. In this case as is evident from the observation of the para 5.1 of the Ld. AO's order, the addition was made on estimation of total turnover after rejecting the books of accounts. Notice u/s. 133(6) were also issued to the various purchase parties and all the notice were returned by the postal authority and the assessee has not produced the party to confirm the same. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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