2021 (8) TMI 1039

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...."the Act") relevant to the Assessment Year 2013-2014. 2. The assessee has raised the following grounds of appeal: 1. The order passed by the Ld. CIT(A) is against the law, equity and justice. 2. The Ld. CIT has erred in law and/or on facts in upholding order of Ld. AO for levy of penalty for concealment of income, while Ld. AO had initiated penalty proceedings for furnishing of inaccurate particulars of income during assessment proceedings. 3. The Ld. CIT(A) has erred in law and/or facts in upholding order of Ld. AO of levy penalty of Rs. 15,79,620/- u/s. 271(1)(c) of the Act. 4. The appellant craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal. 3. The only....

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....aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 7. The Ld. AR before us filed a paper book running from pages 1 to 63 and submitted that the ITAT in the quantum proceedings restricted the addition to the tune of 15% of the expenses disallowed by the authorities below. In other words the disallowance was made on ad hoc and estimated basis for Rs. 766806/- being 15% of Rs. 51,12,040/- only. Thus it was contended by the Ld. AR that the addition was made on estimated basis, therefore the penalty cannot be levied under the provision of section 271(1)(c) of the Act. The Ld. AR in support of his contention relied on the judgment of Hon'ble Gujarat High Court in case of Ramesh chandra Vs. ACIT in tax appeal No.....

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....ed these additions partly then the appeal of the assessee has been admitted by the hon'ble High Court suggesting the question of law is involved. In such type of issue it cannot be said that the explanation submitted by the assessee in support of its addition as false, proving the fact that the assessee has concealed its income. Similarly, the assessee has given explanation with regard to the issue of bogus purchases. Us explanation was accepted by the learned Commissioner of Income-tax (Appeals) in the quantum appeal but such conclusions of the learned Commissioner of Income-lax (Appeals) did not meet the approval of the Tribunal. But again the hon'ble High Court has admitted the question on this aspect also. Therefore, it is also ....