2026 (7) TMI 1897

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....er / Assessment Unit (hereinafter referred to as 'the AO') in pursuance of assessment order dated 24.03.2022 for Assessment Year 2013-14. 2. Brief facts of the case are that the proceedings u/s 147 of the Act were initiated and notice u/s 148 of the Act dated 28.03.2021 was issued. The assessee was issued notices u/s 142(1) of the Act dated 06.02.2022, 19.02.2022, 02.03.2022 and show cause notice dated 05.03.2022. The assessee submitted documents i.e. balance sheet, audit report from 26AS, bank statements, stock register etc. On completion of proceedings, Ld. AO vide order dated 24.03.2022 made addition of Rs. 5,12,000/-. Separate penalty proceedings u/s 271(1)(c) were initiated which culminated in order dated 23.07.2025 by Ld. AO. Again....

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.... 4. Ld. Authorized Representative for appellant/assessee submitted that Ld. CIT(A) vide ex parte order dismissed application for condonation of delay of 150 days in filing appeal ignoring the submissions made in Form 35. Ld. CIT(A) erred in confirming penalty of Rs. 1,10,545/- u/s 271(1)(c) of the Act ignoring submissions and evidences. Photo copies of order dated 13.06.2024 of ld. CIT(A) and ITAT order dated 19.12.2024 in the case of assessee for the relevant year were submitted. Hon'ble ITAT vide order dated 19.12.2024 upheld the action to the extent of impugned accommodation entries @1% only. Hon'ble ITAT Mumbai in case of Mun Gems vs. ACIT in order dated 31.07.2023 held that nearly because adhoc GP rate has been applied on alleged bogus....

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.... submitted the quantitative details of purchases alongwith stock register entry and corresponding export sales which was also verified from the customer appraisal report. Once, the source of payment of purchases have been made through books of accounts and through account payee cheques and there is corresponding sales, then merely because some adhoc GP rate has been applied on such alleged bogus purchases to factor in suppression of alleged gross profit, no penalty can be levied for furnishing of inaccurate particulars of income or concealing particulars of income, which Id. AO has held in his penalty order that penalty is being levied under both the limbs, which itself shows his satisfaction is vague. Accordingly, penalty levied on such ad....