2021 (3) TMI 1118

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....e by the assessee. On appeal before Ld. CIT(A), Ld. CIT(A) after considering the submission of assessee dismissed the appeal of the assessee with the following observations:- 5.12 Further, I have noted due circumspection the arguments advanced by the Ld. AR. However, I cannot concur with the argument that there is no element of concealment or inaccurate particulars for the simple reason that the appellant has not been able to establish & prove the veracity and the genuineness of the impugned purchases. Moreover, it is for the sake of the balance of convenience that the ITAT has reduced the percentage of the bogus purchase to be adopted as the income. Therefore, the element of inaccurate particulars is conspicuously present. Further....

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....of the doubtful purchases. Therefore, it cannot be said that the conduct of the appellant is such so as to escape the rigours of the levy of the penalty u/s. 271(1)(c). 5.15 In view of the above discussion, I have no hesitation in upholding the penalty u/s.271(1)(c) to the tune of Rs. 8,54,256/-. The same is therefore, confirmed and the impugned issue is decided against the appellant. The appeal is therefore dismissed. 3. Aggrieved with the above order, assessee is in appeal before us raising the following grounds:- 1. Ld. Assessing officer erred in levying penalty u/s 271(1)(c), wherein the notice issued for levying penalty is in printed form and cyclostyle notice was issued without specifying under which limb the levy....

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....gher rate of profits by the AO cannot be termed as either concealment or furnishing of inaccurate particulars of income. 7. We find support from the series of decisions by different High Courts as well Coordinate Benches of ITAT, wherein it was held that when addition is made on estimate basis, no penalty is sustainable. For the sake of clarity, the following decisions are as under:- i) Commissioner of Income-tax v. Norton Electronics Systems (P) Ltd. (2014) 41 Taxmann.com 280 (Allahabad HC). ii) Asst. Commissioner of Income-tax v. Vision Research Management ('P) Ltd. ITAT Lucknow (2015) 63 Taxmann.com 8 (Lucknow Trib) iii) Prem Chand vs. Asst. Commissioner of Income-tax (2014) 52 Taxmann.com 95 (Chandigarh....