2022 (11) TMI 1563

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....n the decision of Hon'ble Supreme Court. We found the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, we condone the delay and admit the appeal. The assessee has raised the fallowing grounds of appeal: 1. On the facts and circumstances of the case and in law, the learned CIT erred in confirming the order of the assessing officer that penalty levied on our appellant is in order. 2. On the facts and circumstances of the case and in law, the learned CIT failed to appreciate that there is neither concealment of particulars of income not furnishing of inaccurate particulars of income. 3. On the facts and circumstances of the case and in law, the learned CIT erred in ignoring the fa....

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....sued notices and called for the information but there was no compliance, further the AO has issued notice u/s 133(6) of the Act on the six none genuine parties and the said notices were returned un served by the postal authorities. The assessee was called to produce the books of accounts, ledger and the other documentary evidence to substantiate the genuineness of the transactions. Since the assessee has failed to produce the details, the A.O. has dealt on facts and available material and applied Best Judgement Assessment and alleged that the purchases are not genuine and made addition of Rs. 63,52,693/- and assessed the total income of Rs. 65,52,520/- and passed the order u/s 144 r.w.s 147 of the Act on 12.03.2015. 3. Subsequently, the AO....

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....evy of penalty u/s 271(1)(c) of the Act by the A.O based on the assessment order under section 144 r.w.s 147 of the Act . We find the A.O has made adhoc disallowance of bogus purchases and has accepted the sales in the books of accounts. On appeal, the CIT(A) has restricted the addition considering the profit element @ 25% and on further appeal the Honble Tribunal has restricted the addition to the extent of 9%. We are of the opinion, that where the addition is sustained on the estimated basis no penalty u/s 271(1)(c) of the Act can be levied. The disallowance of purchases on ad-hoc/estimated basis does not tantamount to furnishing inaccurate particulars of income under the provisions of Section 271(1) (c) of the Act. The A.O. has not doubt....