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Issues:
1. Penalty cancellation under s. 271(1)(c) for claiming bogus purchases. 2. Delay condonation in filing appeal against penalty cancellation. Issue 1: Penalty cancellation under s. 271(1)(c) for claiming bogus purchases: The appeal by the Revenue was against the cancellation of a penalty under s. 271(1)(c) of the IT Act for claiming bogus purchases amounting to Rs. 2,56,777. The CIT(A) cancelled the penalty after the assessee contended that the alleged bogus purchases were reflected in the closing stock, neutralizing the cost claimed. The Revenue filed an appeal against this decision after a significant delay of 6 years and 250 days. The appellant argued that the delay was due to discrepancies in jurisdiction changes and lack of knowledge about the true facts. However, the Tribunal found no sufficient grounds to condone the delay, emphasizing the importance of timely appeals and proper explanations for delays. The appeal was dismissed as out of time. Issue 2: Delay condonation in filing appeal against penalty cancellation: The delay in filing the appeal by the Revenue against the penalty cancellation was a crucial aspect of the case. The appellant sought condonation of the delay, citing jurisdictional changes and lack of knowledge about the true facts as reasons for the delay. However, the Tribunal found that the appellant failed to provide sufficient and cogent reasons for the delay. The Tribunal emphasized the importance of adhering to the law of limitation and dismissed the appeal as out of time. The Tribunal also highlighted the need for timely actions based on the directions given in previous orders, emphasizing the significance of following through on Tribunal directives. In conclusion, the Tribunal dismissed the Revenue's appeal against the cancellation of the penalty under s. 271(1)(c) for claiming bogus purchases due to the inordinate delay in filing the appeal and the lack of sufficient grounds for condonation. The case underscores the importance of timely appeals, proper explanations for delays, and adherence to Tribunal directives for further actions.
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