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TMI Blog2017 (2) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to Rs. 3,31,411/- levied U/s 271(1)(c) of the IT Act, 1961 by the ld. A.O. 2. Briefly stated facts of the case are that the case of the assessee was picked up for scrutiny assessment and the assessment U/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as the Act) was framed vide order dated 31/12/2008. While framing the assessment, the Assessing Officer rejected the books of account and applied gross profit @ 25% on the basis of unverifiable purchases. The A.O. also initiated penalty U/s 271(1)(c) of the Act for furnishing inaccurate particulars/concealing true particulars of income. 3. Ld. Counsel for the assessee has submitted that the issue in quantum proceedings reached up to the Hon'ble Tribunal and the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning to inflation of purchases are rightly levied. He also relied on the decision of the Hon'ble ITAT Chandigarh Bench decision in the case of ITO Vs. Sru Knitters (P) Ltd. 110 TTJ 671. 5. We have heard the rival contentions of both the parties, perused the material available on the record and also gone through the orders of the lower authorities. The Coordinate Bench in the identical case i.e. in the case of ITO Vs. M/s Bhansali Trading Corporation, has held as under:- "6. We have heard the rival contentions of both the parties and perused the material available on the record. The addition made by the Assessing Officer was specific on account of unverifiable purchases on which G.P. @ 25% was applied and added in the income. However, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same by an estimated figure, in the strict sense, can neither be said to be addition of any amount in the returned income nor disallowance of any amount as deductions claimed. The word ''amount'' of which additions made or deductions disallowed also denotes reference to specific item of amount added or disallowed as deduction in contrast to substitution of altogether a new estimated sum in place of the income returned. It is a case neither of addition or disallowance but a case of substitution." In view thereof, the Hon'ble High Court has upheld the decision of the Tribunal for deleting the penalty. In the light of the above decision of the Hon'ble Jurisdictional High Court, we hereby direct the Assessing Officer to delete the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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