2021 (9) TMI 678

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.... on the following grounds of appeal before us: "1. On the facts and circumstances of the case and in law the Ld. CIT(A) has erred in deleting the penalty levied OF Rs. 1,10,000/- u/s 271(l)(c) of the I.T. Act with appreciating the fact that Ld. CIT(A) has himself upheld the quantum addition of 3,55,154/- being 12.5% on the bogus purchase of Rs. 28,41,238/- against 30% of 8,52,371/- made by the Assessing Officer vide its order u/s 143(3) r.w.s. 147 of the Act dated 21.03.2016. 2. On the facts and circumstances of the case and in law the Ld. CIT(A) while deleting penalty u/s 271(l)(c) of Rs. 1,10,000/- ignored the fact that the Hon'ble ITAT vide appellate order dated 22.05.2018 in the assessee's own case vide appeal No. ITA 1000/M....

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....penalty of Rs. 1,09,742/-. 5. On appeal, the CIT(A) observed that addition was made in the hands of the assessee on an estimate basis. Being of the view that penalty under Sec. 271(1)(c) cannot be imposed where income was estimated, the CIT(A) vide his order dated 28.06.2019 vacated the penalty. 6. Aggrieved, the revenue has assailed the order passed by the CIT(A), wherein the latter had vacated the penalty imposed by the A.O under Sec. 271(1)(c). The ld. Authorized Representative (for short 'A.R') for the assessee at the very outset of the hearing of the appeal submitted that the appeal filed by the revenue was not maintainable as per the CBDT Circular No. 17/2019, dated 08.08.2019, as the tax effect therein involved was substantially lo....

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.... liable to be dismissed on the said count itself. 10. Before adverting any further it would be relevant to cull out the exception carved out in clause 10(e) of the CBDT Circular No. 3/2018 (as amended on 20.08.2018), which reads as under: "10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: - (a) to (d) .................................................................................. (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI / ED / DRI / SFIO / Directorate General of GST Intelligence (DG....