2021 (1) TMI 1034

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.... This appeal by revenue is arising out of the order of Commissioner of Income Tax (Appeals)-2, Mumbai [for short 'the ld. CIT(A)] in Appeal No. 598/15-16 dated 03.12.2018. Assessment was framed by ACIT Circle-3, Thane for the Assessment Year 2011-12 under section 143(3) r.w.s 147 of the Income Tax Act, 1961 (hereinafter 'the Act') vide order dated 26.02.2015. The penalty under dispute was levied b....

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.... the assessee could not produce the alleged bogus parties for verification of genuineness of transaction during assessment proceedings as well as penalty proceedings and voluntary disclosure of his concealed income does not absolve the assessee from penalty. 3. On the facts and in the circumstances of the case, and in law, the Ld.CIT(A) has erred in deleting the penalty by not appreciating the ....

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....hat that the assessee is engaged in the business of sales and services of computers, mobile and accessories. The Income Tax Department received information from Sales Tax Department, Government of Maharashtra that the assessee has received a bogus purchase bill from Shakti Trading Company amounting to Rs. 8,77,500/-, which is bogus and the Assessing Officer added the entire amount under section 69....

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.... and deleted the penalty by observing in para-9 as under: "9. The levy of penalties is merely on disallowance of purchases and not finding of concealment of any particular or mala-fide intention to reduce taxable incomes. Additions made on account of disallowance of purchases as bogus automatically cannot justify the penalties levied u/s 271(1)(c) of the Act. Accordingly, the penalties of Rs. 4,....