9911796707
TMI Blog2017 (11) TMI 1857X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases at 12.5% and by reducing the Gross Profit already declared by the assessee. We hold that there is no concealment of income or furnishing of inaccurate particulars as the profit element was determined by way of adhoc estimation. Coming to the interest, the assessee furnished complete details in the return of income and made a claim and simply because the claim is denied and cannot lead to furnishing of inaccurate particulars or concealment of income. No allegation by Assessing Officer that the assessee failed to disclose the particulars relating to its claim in the return of income. Thus we hold that there is no concealment of income or furnishing of inaccurate particulars of income. Thus we direct the Assessing Officer to delet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. In the course of penalty proceedings, it was contended by the assessee that purchases made by him from various parties referred to in the Assessment Order are genuine. Assessee is into the business of wholesale traders of building materials and assessee furnished monthly purchases and sales summary, item wise input and output quantity, details of sales, date wise purchases and sales stock register, consolidated yearly item wise quantity stock and value summary with gross profit ratios. It was contended that in view of these sales the purchases made by the assessee are genuine and they are supported by delivery challans, bills, vouchers etc., However the Assessing Officer estimated the profit element on the purchases at 12.5% a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain expenses as according to him are inadmissible that itself does not lead to furnishing of inaccurate particulars of income. 6. We have heard the rival submissions, perused the orders of the authorities below. In so far as the penalty levied on estimation of profit element on purchases is concerned, we are of the view that Assessing Officer had made only adhoc estimation of profit on certain purchases treated as unexplained expenditure. Assessing Officer did not doubt the sales made by the assessee from out of such purchases. Assessing Officer based on the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451] estimated the profit element in such purchases at 12.5% and by reducing the Gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
