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2019 (3) TMI 92 - ITAT DELHIBogus purchases - assessment u/s 143(3) - assessee has failed to file any evidence in the form of confirmation from aforesaid parties - CIT-A restricted the addition to 20% - HELD THAT:- CIT(A) has categorically arrived at the conclusion that the assessee has failed to adduce any evidence to prove the genuineness of two creditors in question and that purchases shown by the assessee in the name of M/s. Lotus Communication and M/s. Deepa Enterprises were not genuineness, thus, bogus, as only entries have been received by the assessee in the shape of purchases, it is difficult to make out, as to how, the CIT(A) has restricted the addition made by the AO to 20%. Consequently appeal filed by the revenue is hereby allowed by setting aside the findings returned by CIT(A) and the assessment order passed by AO is hereby restored. - Decided against assessee Penalty u/s 271(1)(c) - assessee has concealed his particulars of income / furnished inaccurate particulars of income to evade the tax on concealed income - HELD THAT:- Following the law laid down by Hon’ble High Court in CIT vs. Manjunatha Cotton and Ginning Factory & Ors. [2013 (7) TMI 620 - KARNATAKA HIGH COURT] we are of the considered view that the AO has failed to fulfill the condition laid down u/s 271(1)(c) of the Act before levying the penalty which is not automatic. Even otherwise, when it is not discernible from the assessment order as to whether assessee has furnished inaccurate particulars of income or has concealed particulars of income so as to apply the deeming provisions contained under Explanation1 (A) & 1(B) of the Act, the penalty u/s 271(1)(c) of the Act is not sustainable. - Decided in favour of assessee
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