2025 (2) TMI 830

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....ndra Shah, A/R For the Revenue : Shri Bhangepatil Pushkaraj Ramesh, Sr. D/R ORDER PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 01/10/2024 by NFAC, Delhi [hereinafter 'the ld. CIT(A)], pertaining to AY 2009-10. 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the levy of penalty u....

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....271(1)(c) of the Act, and a penalty of Rs. 1,84,771/- was levied. 4. Before us, the ld. Counsel for the assessee vehemently stated that since the quantum addition has been estimated, no penalty should be levied on estimation of profit. Strong reliance was placed on the decision of the Co-ordinate Bench in the case of DCIT vs. M/s. Unisynth Chemicals in ITA No. 5967/Mum/2014 and the judgment of ....

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....e Tribunal restricted the quantum addition at 12.5% of the bogus purchases. We do not find any merit in the contention of the ld. Counsel that the profit has been estimated and the penalty has been levied on estimated profit. Facts on record show that there were bogus purchases and only the profit element has been added which means that the assessee has concealed the income to this extent in the g....