2025 (3) TMI 2184

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....x (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short 'the Act') for the A.Y. 2009-10 & 2012-13. 2. As both the appeals are based on the almost identical facts and issues and the penalties, therefore for the sake of brevity the same were heard together and are being disposed of by this composite order by taking into consideration the facts and circumstances and issues involved in ITA No.25/Mum/2025 as a lead case and result of the same would be mutatis mutandis applicable to both the appeals under consideration. 3. Coming to ITA No.25/Mum/2025, the Assessing Officer (AO) vide assessment order dated 30.12.2016 u/s 153A r.w.s. 143(3) of the Act has made the certain disallowances as mentioned below in para....

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.... 24,92,650/- on account of bogus purchases 26,988 12,272 Purchases alleged to be bogus based of sales tax department information. CIT(A) held that material was duly consumed and therefore, estimated the disallowance to 12.5%. Tribunal further restricted estimation to 8%. (Para 9.10 of ITAT order pg. no. 47 & 48 ) - Penalty deleted by CIT(A) since income assessed under MAT as well as on merits holding estimated addition 5. Disallowance on account of over invoicing 16,83,900 0 Tribunal deleted the entire addition holding no over invoicing done by assessee. (Para 8.6 to 8.12 of ITAT order Pg. no. 35) - Penalty deleted by CIT(A) since quantum deleted. 6. Disallowance of loss pertaining to exempt unit (Adjustment ma....

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....dditions and therefore considering the fact that quantum additions have been deleted, he deleted the penalties imposed. Thus, in our considered view, the decision of the Ld. Commissioner in deleting the penalties imposed on the aforesaid disallowances cannot be faulted with and therefore the decision of the Ld. Commissioner needs no interference. 8. Coming to the disallowance as mentioned at sl. No.4, which pertains to bogus purchases, we observe that the AO has made the disallowance of Rs.24,92,650/- on account of bogus purchases, which was restricted to the extent of Rs. 26,988/- being profit element @ 12.5%, embedded in the said purchases, by the Ld. Commissioner. The AO therefore on the said addition of Rs. Levied the penalty. 8.1....