2021 (3) TMI 621

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....dated 28.3.2019. 2. The assessee in this case is engaged into contractual work-in-progress. The assessment was reopened upon information from sales tax department that assessee has made purchases from bogus dealers, the Assessing Officer made 100% addition of the bogus purchase. The Assessing Officer did not even issue notice to the alleged bogus supplier. 3. Upon assessee's appeal learned CIT(A) has noted that the sales have not been doubted. Accordingly placing reliance upon several case laws and up on the facts of the case he sustained part disallowance out of the bogus purchases as under :- "It is seen a number of cases that the addition has been restricted to certain percentage of the alleged bogus purchases. The app....

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....facts of the present case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee savings on account of non-payment of tax and others at the expense of the exchequer. In such situation in our considered opinion on the facts and circumstances of the case the disallowance out of the bogus purchases done by the learned CIT(A) meets the end of justice. Accordingly we uphold the order of learned CIT(A). 6. In the result this appeal filed by the revenue stands dismissed. 7. This is an appeals by the Revenue against order's of learned CIT(A) dated 28.3.2019, wherein following penalty levied under 271(1)(c) of the Income Tax Act has been reduced as under :- Assessment y....

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....acts recorded above the disallowance has been made on an estimated basis on account of the nonproduction of suppliers before the assessing officer. The purchase vouchers were duly produced and the payments were through banking channel. In these backgrounds in our considered opinion assessee cannot be visited with the regours of penalty under section 271(1)(c) of the Act. As a matter of fact on many occasions on similar circumstances in quantum proceedings the disallowance itself has been deleted. In our considered opinion on the facts and circumstances of the case assessee cannot be said to have been guilty of concealment or furnishing of inaccurate particulars of income. In this regard we draw support from the decision of a larger bench of....