2023 (10) TMI 1538

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.... by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), dated 28.03.2019. 2. At the outset itself, Learned Counsel for the assessee informs the Bench that assessee does not wish to press ground no. 1; therefore I dismiss the ground no. 1 raised by the assessee, as not pressed. 3. Brief facts qua the issue are that the assessee has filed his return of income for the year under consideration on 01.10.2014 declaring total income at Rs. 4,85,450/-. The assessee's case was selected for scrutiny under CASS and notice u/s 143(2) was issued on 31.08.2015. A search action u/s. 132 of the Income tax Act was carried out at the premises of Rajendra Jain & others Group on 03.10.2013. During ....

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.... imposed the penalty to the tune of Rs. 95,230/-. 5. On appeal, ld. CIT (A) confirmed the penalty imposed by the Assessing Officer. 6. Aggrieved by the order of ld. CIT(A), the assessee is in appeal before us. 7. At the outset, Ld. Counsel for the assessee submitted that the Assessing Officer has made the addition based on estimation and penalty has also imposed on estimation. The Ld. Counsel submitted that penalty on estimation should not be imposed, for that Ld. Counsel relied on the judgment of the Co-ordinate Bench of ITAT, Surat in the case of Nazar Impex Pvt. Ltd. vs. ITO, in ITA Nos. 132/SRT/2021 & 133/SRT/2021, for AYs. 2007-08 & 20014-15, order dated 30.06.2022 wherein the Tribunal held as follows: "7. C....

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....d that when assessee is doing import on behalf of client who is "not identified by the assessee" it is held that all expenses like exchange loss, VAT payment, octroi payment, custom duties and all statutory expenses are also met by such client on whose behalf the goods are imported. Due to such reason the books of a/c & audit prepaid by assessee is rejected & assessment of income is on the basis of commission income earned by assessee. Working of commission on Total import, Local sales, Loan entries:- Sales Amount Rate of commission Commission income Total turnover 1,02,51,48,382/-     Total Import 37,71,17,250/-     Total turnover (Excluding import & group turn....