TaxTMI 
TaxTMI 
2012 (2) TMI 467
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.... No. 1104/Ahd/2008 : A.Y. 2001-02 2. The only issue in this appeal of the assessee is regarding validity of penalty levied under section 271(1)(c) of the Income-tax Act, 1961. 3. Learned counsel for the assessee submitted that the penalty under section 271(1)(c) of the Act was imposed on the assessee on two counts, i.e., on account of estimate of gross profit rate, and other regarding payment to M/s. Swami Chemicals ("SC" for short). He submitted that the gross profit rate has been applied by way of estimate and therefore no penalty under section 271(1)(c) of the Act was imposable on the assessee. Regarding the other issues of payment to "SC", learned counsel submitted that there was no mens rea and the Tribunal in the first round of ....
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....ccount books of the assessee and therefore the same was rejected and flat rate of gross profit was applied by the Department. We find that it is well settled that no penalty under section 271(1)(c) of the Act could be imposed merely on the ground that there were defects in the account books of the assessee and the account books were rejected and the flat rate of the gross profit is applied to arrive at the gross profits of the assessee. Merely because in the case of the assessee a survey action was undertaken, it does not follow that the penalty under section 271(1)(c) was imposable on the estimated trading profit of the assessee. Accordingly, we find no justification for imposition of penalty under section 271(1)(c) of the Act on this issu....
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.... explanation, which could not be termed as not bona fide. In the absence of any corroborative evidence to prove the charge that any part of 3 per cent. being sales tax on the transaction remained with assessee, we are unable to sustain the penalty imposed under section 271(1)(c) of the Act on the assessee, which is cancelled. Accordingly, this appeal of the assessee is allowed. I. T. A. No. 629/Ahd/2009 : A.Y 2004-05 6. There is a delay of 475 days in filing the present appeal by the assessee before the Tribunal. The assessee has filed condonation petition along with affidavit of Shri K.L. Bhakta, managing partner with medical certificate and also affidavit of Shri M. S. Sarvaiya, clerk of the assessee-firm explaining the circumstance....
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....e AO with direction to decide the same afresh in accordance with law after allowing reasonable opportunity of being heard to the assessee. We direct accordingly. 11. Ground No. 1(ii) of the assessee's appeal reads as under : "1(ii) The learned Commissioner of Income-tax (Appeals) has erred in law as well as on the facts while confirming the disallowance of Rs. 3,75,823 on account of alleged excessive or unreasonable payments of job work charges under section 40A(2)(b) of the Act." 12. Learned counsel for the assessee submitted that the job work charges are comparable with the job work charges of the immediately preceding assessment year. In the immediately....
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.... "1(iii) The learned Commissioner of Income-tax (Appeals) has erred in law as well as on the facts while confirming the ad hoc disallowance of dalali/commission expenses. To the extent of Rs. 1,81,587. addition of Rs. 8,09,100 on account of alleged unexplained cash credits under section 68 of the Act by the AO." 15. Learned counsel for the assessee submitted that the commission expenses were paid through account payee cheques and the assessee has filed confirmation from the payees with their permanent account number. The learned Departmental representative relied on the orders of the AO and the CIT (A). 16. We have considered rival submissions. In the facts of the....
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....Business purpose of the trade discount could not be controverted by the Revenue. We are unable to sustain the reasoning of the Commissioner of Income-tax (Appeals) that there should have a clear method in terms of percentages, and evidence of negotiation of the rates between the assessee and the parties should be there. We find that the assessee has paid the trade discount for business purpose to its constituents and no case for disallowance thereof could be made out by the Department and accordingly the disallowance is deleted and Ground No.1(iv) of the assessee's appeal is allowed. 20. Ground No. 1(v), (vi) and (vii) are reproduced hereunder : "(v) The lear....