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2015 (3) TMI 1288 - ITAT JAIPURPenalty U/s 271(1)(c) - addition on rejection of books - estimated addition on probability only i.e. to “plug the leakage - Held that:- It is fact that the additions were confirmed by the lower authorities as well as ITAT on the basis of unverifiable/bogus purchases, for which department had collected number of evidences including statement during the course of search and seizure at M/s Laxmi Diagold Jewellers and also in case of other suppliers. The Ld. Assessing Officer had reproduced the statements of these parties in the assessment order and came to conclusion that these transactions were bogus. The Coordinate Bench has confirmed the quantum addition of ₹ 5 lacs in A.Y. 2004-05 and ₹ 2 lacs in A.Y. 2005-06 on the basis of findings given by the lower authorities The case laws referred by the assessee are not squarely applicable on facts. The explanation submitted by the assessee was not bonafide. The assessee has not correlated any sale with reference to bogus purchases made in the books of account from the various parties. The Hon'ble Supreme Court in the case of Mak Data P. Ltd. Vs. CIT (2013 (11) TMI 14 - SUPREME COURT) has held that the assessee fails to offer an explanation which is bonafide and proved that all the material facts have been disclosed, penalty proceeding is justified. In the case of CIT Vs. Kalindi Rail Nirman Engineering Ltd.(2014 (4) TMI 679 - DELHI HIGH COURT) has held that even imposition of penalty on estimate is justified, are squarely applicable. Therefore, we confirm the order of the ld. CIT(A) in both the assessment years. - Decided against assessee.
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