2008 (11) TMI 176

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....the court was delivered by C. N. RAMACHANDRAN NAIR J. - In the reference at the instance of the assessee, the Tribunal has referred the following question as arising from their order disposing of the penalty appeal for 1984-85. "Whether the Tribunal was right in confirming the penalty under section 271(1)(c) in respect of the inflation of purchase to the tune of Rs.1,11,193/- where it could be f....

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....of Rs.1,11,193/- which represents proforma invoices not representing any actual purchases. Penalty is levied based on inflation of purchase value and on account of gross profit addition. However, in successive appeals, penalty attributable to gross profit addition was deleted which is final. However, Tribunal sustained penalty pertaining to inflation of purchases amounting to Rs.1,11,193/-. 3. Ad....