2019 (3) TMI 1756

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.... 30.3.2016 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue raised in this appeal is against the order of the CIT(A) confirming levy of penal ty under sect ion.271(1) (c) of the Act by the Assessing Officer in respect to addition of alleged bogus purchases by estimating the same at 12.5%. For this, the assessee has raised jurisdictional issue as well as issue on merits. The assessee has raised the first jurisdictional issue vide Ground No.1 as under: "1. The ld CIT(A) erred in levying penalty of Rs.1,72,870/ - under sect ion.271(1) (C). A. Validity of penalty proceedings under sect ion.274 r.w.s271(1)(c) . a. The notice received by the assessee under sect ion 274 read ....

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....y as the assessee has not preferred an appeal before the CIT(A) at the Assessing Officer 's stage assessee failed to prove the genuineness of the purchases of Rs.42,62,451/ - of 11 parties as mentioned in para 2 above. This proves beyond doubt that assessee has concealed the particulars of income to the extent addition made @ 12% of Rs.5,32,806/ - and made itself liable for penal ty on this account. The assessee during the assessment proceedings agreed the addition only when the AO brought to the notice of the assessee regards to the bogus purchases. it leads to concealment of income as held in the decision in the case of Indus Engg. Co vs ACIT (Inv) 17(1), Mumbai by the Hon'ble H.C. in W.P. 539/1993 (2009) 184 Taxman 869(Bom) in which case....

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....rate particulars of income while imposition of penalty on the other limb i.e., concealment of income. Further, the Tribunal also noted that notice issued under section 274 of the Act is in a standard proforma, without having striked out irrelevant clauses therein. This indicates non-application of mind on the part of the assessing officer while issuing the penalty notice. 6. When these facts were pointed out by this Bench to ld Sr Departmental Representative, he only relied on the assessment order, penalty order and the order of the CIT(A). 7. We have heard the rival contentions and gone through the facts and circumstances of the case. Admittedly, as noticed from the notice issued by the Assessing Officer under section.274 read with s....