TaxTMI 
TaxTMI 
TaxTMI 
2020 (11) TMI 94
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....On the facts, and in circumstances of the case, and in law, the Assessing Officer erred in imposing penalty under section 271(1)(c) of the Income-tax Act 1961 without appreciating that the notice initiating penalty under section 274 read with section 271(1)(c) was bad in law. 2. On the facts and in circumstances of the case, and in law, learned Commissioner of Income-tax (Appeal) erred in upholding action of the Assessing Officer in levying penalty under section 271(1)(c) of the Income-tax Act 1961 amounting to Rs. 120,000/- without appreciating that the addition of alleged non-genuine purchases was made on a difference of opinion; and there was neither concealment of income nor filing of inaccurate of income, as the Appellant had furnish....
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.... to cover any leakage of revenue. The appellant shows in the paper book that his GP ratio in the A.Y. 2009-10 under consideration is 17.67% as against 26.07% and 18.43% in A.Y. 2008-09 and A.Y. 2007-08 respectively. It shows that the GP ratio of the appellant has though decreased during the year but it is to be noted that the sales turnover has increased substantially. In the given circumstances, I propose to apply 17.67% GP on the alleged purchases of Rs. 21,17,152/- since GP of 17.67% has been declared by the appellant during the year under consideration. Therefore, I direct the AO to estimate profit of 17.67% on the total alleged bogus purchases which works out to Rs. 3,74,100/- (17.67% of Rs. 21,17,152/-). The appellant therefore gets a....
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....d and declared in the return filed for the instant assessment year. The above facts and circumstances affirm that the appellant has furnished inaccurate particulars of income and has concealed its income thereby liable to be penalized within the provisions of Section 271(1)(c). The AO has rightly levied the penalty u/s. 271(1)(c) of the Income Tax, Act, 1961." 5. Before us, the Ld. counsel for the assessee relies on the order of the Tribunal in the case of Reliable Metal Industries v. ACIT (ITA No. 758/Mum/2018) for the AY 2010-11 and submits that on similar facts, the Tribunal has allowed the appeal filed by the assessee. On the other hand, the Ld. DR, relying on the order of the Ld. CIT(A) submits that the penalty of Rs. 1,20,000/- levie....
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....ils (vouchers) c. Sample Bills of Sales and Purchases d. Confirmation of Hima Bye Chem Corporation e. Stock Statement f. Audit Report Under M-VAT, 2002 in Form 704- Full Set 2. That as per the books of Account Sale /Purchase Register : A. We have purchased goods from a. Jigna Enterprises : BILL NO. DATE AMT 158 04/08/2008 2,56,941/- 220 11/08/2008 1,17,916/- 283 19/08/2008 1,13,712/- 402 02/09/2008 2,35,507/- 463 08/09/2008 1,21,462/- 485 01/10/2008 2,35,507/- 491 03/10/2008 4,03,934/- 515 05/10/2008 3,21,955/- TOTAL 18,05,152/- b. Niddhish Impex : BILL NO. DATE AMT 25/NIPL 06/01/2009 3,12,00/- B. The said purchases of goods are mainly sold to M/s. Vardhaman Enterprises and other ....
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....hase of goods, as there is corresponding sales. G. Our books of accounts are duly audited u/s 44AB of the Income Tax Act, 1961. We also have the ledger confirmation of the party duly signed by them along with their PAN nos. H. There are different types of Hawala Dealers under the M-VAT Act, 2002 and other High Court decisions in our favour : As per Annexure I & II In our case as the Sale is identifiable, the question of disallowance does into arise as 'if there is a sale, there must be a corresponding purchase of goods'. The above condition is fulfilled in our case therefore, the question of disallowance does not arise." 6.1 We observe that though the assessee had filed the details as mentioned above containing his full explanation....