2012 (11) TMI 157

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....EDI, ACCOUNTANT MEMBER. This appeal is filed by the assessee against the order of CIT (A)-I, Surat dated 24-11-2009 for the assessment year 2005-06. 2. The sole ground raised by the assessee reads as under:- "The Ld. CIT (A)-I, Surat erred in confirming the penalty levied u/s. 271(1)(c) for furnishing inaccurate particulars of income without considering the quantum appeal of appellant is ....

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....d and levied penalty of Rs.14,89,149/- u/s. 271(1)(c). 4. Against the penalty levied by A.O. assessee preferred appeal before CIT (A). CIT (A) confirmed the penalty for the reason that purchases were found to be totally bogus and the assessee had furnished inaccurate particulars of income by introducing bogus purchases and therefore assessee had concealed its real income. 5. Before us the Ld....

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....on has been sustained on estimated basis, no penalty u/s. 271(1)(c) can be levied. For this proposition he relied on the decision in the case of CIT vs. Sagrur Vanaspati Mills Ltd. (2008) 303 ITR 53, (P&H), Navjivan Oil Mills vs. CIT (2001) 252 ITR 417 (Guj.) and the decision of co-ordinate Bench in the case of Rajlaxmi Prints Pvt. Ltd. (ITA No.809/Ahd/2010 dated 15-6-2012). He thus urged that the....

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.....O. was right in levying penalty. He further submitted the facts in the case of Rajlaxmi are distinguishable. He further submitted that the facts in the case of Navjivan Oil Mills (supra) are also distinguishable and therefore cannot be relied upon. He thus submitted that in the facts of the present case the A.O. was justified in levying penalty addition therefore the order of the A.O. be up....