9911796707
TMI Blog2020 (10) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) and direct the A.O to delete the penalty and allow the grounds of appeal of the assessee. - ITA No. 5557/Mum/2018 - - - Dated:- 28-10-2020 - SHRI RAJESH KUMAR, ACCOUNTANT MEMBER And SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER Appellant by : Shri Hitesh Shah, AR Respondent by : Shri Amit Pratap Singh, DR ORDER PER PAVAN KUMAR GADALE - JM The assessee has filed an appeal against the order of the Ld.CIT(A)-42, Mumbai, passed u/s 271(1)(c) and 250 of the Income Tax Act, 1961.The assessee has raised the following grounds of appeal: On the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Appeal)- 42, MUMBAI (, hereinafter referred to as 'the CIT(A)') has erred in con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income at 12.5% of bogus purchases, were the details were provided by the assessee which was worked out to ₹ 1, 10, 224/- and in respect of remaining transactions of ₹ 5, 22, 057/-, the A.O. made 100% addition and assessed the total income of ₹ 8, 95, 400/- and passed the order under section 143(3) r.w.s. 147 of the Act dated 28.01.2016. Subsequently, the A.O. initiated proceeding under section 271(1)(c) and called for the explanations. Since the assessee has not filed the details. The A.O. has levied the penalty based on the addition of ₹ 5, 22, 057/- which worked out to ₹ 1, 34, 980/-and passed the order under section 271(1)(c) dated 29.09.2016. 3. Aggrieved by the penalty order, the assessee has file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee. We find strength in the submissions of the LdAR. The A.O has made disallowance of bogus purchases but has accepted the sales in the books of accounts, and whereas the Hon ble tribunal in ITAno5556/M/2018 order dt13-03-2020 has directed the AO to disallow 12.5% of Bogus purchases. We are of the opinion, that where the addition is sustained on the estimated basis, no penalty u/s 271(1)(c) of the Act can be levied on the estimated income. Accordingly, we, considering the facts and principles of natural justice set aside the order of the CIT(A) and direct the A.O to delete the penalty and allow the grounds of appeal of the assessee. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the op ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
