9911796707
TMI Blog2020 (10) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... For that reason only, the Assessing Officer has estimated the profit element embedded in such purchases @ 12.5% and added back to the income of the assessee. Additions of such estimated profit by no means would lead to an inference that the assessee has either furnished inaccurate particulars of income or concealed its income. That being the case, the provisions of section 271(1)(c) cannot be pressed into action - Decided in favour of assessee. - ITA no.3296 And 3297/Mum./2019 - - - Dated:- 7-10-2020 - Shri Saktijit Dey, Judicial Member And Shri N.K. Pradhan, Accountant Member For the Assessee : None For the Revenue : Shri Amit Pratap Singh ORDER PER SAKTIJIT DEY. J.M. Aforesaid appeals filed by the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 and ₹ 34,76,696, for the assessment year 2010 11 are non genuine. However, instead of disallowing entire purchases, the Assessing Officer proceeded to estimate the profit element embedded in such purchases and disallowed 12.5% out of the purchases made in the relevant assessment years. Accordingly, he added back an amount of ₹ 1,87,110, in assessment year 2009 10 and an amount of ₹ 4,34,587, in assessment year 2010 11. On the basis of such additions, the Assessing Officer initiated proceedings for imposition of penalty under section 271(1)(c) of the Act and ultimately passed orders imposing penalty under section 271(1)(c) of the Act of ₹ 63,600, in assessment year 2009 10 and an amount of ₹ 1,47,716, in ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. However, the additions of such estimated profit by no means would lead to an inference that the assessee has either furnished inaccurate particulars of income or concealed its income. That being the case, the provisions of section 271(1)(c) of the Act cannot be pressed into action. In view of the aforesaid, we do not find any infirmity in the order of learned Commissioner (Appeals) in deleting the penalty imposed under section 271(1)(c) of the Act in both the assessment years under consideration. Grounds raised by the Revenue are dismissed. 6. In the result, appeals are dismissed. Order pronounced through notice board under rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963, on 07.10.2020 - - TaxTMI - TMITax - In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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