2015 (10) TMI 1705

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....facts and in the circumstances of the case the Ld. CIT(A) was right in deleting the penalty of Rs. 22,63,450/- imposed by the AO u/s 271(1)(c) of the Income Tax Act, 1961 especially when the books of account of the assessee were an reliable and an addition on account of low G.P. was confirmed by the CIT(A)? (ii) "Whether on the facts and in the circumstances of the case the Ld. CIT(A) was right in deleting the penalty of Rs. 22,63,450/- imposed by the AO u/s 271 (1)(c) of the Income Tax Act, 1961 especially when:- (a) The assessee failed to conclusively establish the genuineness of the parties from whom purchases were made. (b) Failed to produce the parties concerned. (c) Failed authenticate what was shown in the books of account (....

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....s no satisfaction to initiate penalty u/s 271(1)( c) was recorded by the CIT(A) at the time of giving direction to make trading addition purely on estimate basis. 4. The CIT(A) on the facts and circumstances of the case, was right in deleting penalty u/s 271(1)(c) of the Income Tax Act which was imposed by the Assessing Officer in respect of trading addition as per directions of CI.T.(Appeals) while the satisfaction to initiate penalty has been recorded in respect of unverified purchase in the assessment order. 5. The CI.T.(A) ,on the facts and circumstances of the case, was justified in deleting penalty, the Assessing officer had failed appreciate the conclusion of the CIT(A) that sufficient process of the evidences of transaction of the....

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.... purchases from three parties as bogus. As per sec 271(l)(c), penalty is to be levied if the assessee has concealed particulars of income or has furnished inaccurate particulars of such income. In this case at hand, the issue boils down to the fact that the whole basis of levying the penalty were unverifiable purchases from certain parties which has been deleted emphatically by the CIT(A) in a detailed manner and the addition which has been sustained is only on the basis of estimation of average G.P. rate of the five concerns of the group. In other words, the whole basis of making the addition by the AO has been set aside. Moreover, the work performed as reflected in the trading Account has been accepted by the AO which implies that work co....