2019 (2) TMI 1881

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..... . It is settled legal position that no penalty under section 271(1)(c) is leviable on adhoc disallowance. Considering the peculiar facts and circumstances of the case, we direct the Assessing Officer to delete the entire penalty levied under section 271(1)(c) of the Act. - Decided in favour of assessee.
Shri Shamim Yahya, Accountant Member And Shri Pawan Singh, Judicial Member Appellant by: Shri Ravindra Poojary (AR) Respondent by: Shri Chaudhary Arun Kumar Singh (DR) ORDER Pawan Singh, 1. This appeal by assessee is directed against the order of learned Commissioner (Appeals)-2, Pune dated 09.11.2017, which in turn arises from the penalty order passed by assessing officer under section 271(1)(c) dated 26.09.2014 for Assessment .....

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..... essing Officer made the re-opening of the assessment on the basis of information received from Sales Tax Department, Government of Maharashtra that the assessee is one of the beneficiaries who has taken accommodation entries from hawala dealers. The assessee made purchases of ₹ 71,58,777/- from parties namely Maruti Steel Traders of ₹ 37,70,068/-, Shiv Industries of ₹ 14,57,315/- and Anupam Metal of ₹ 19,31,394/-. The name of the said parties was included in the list of hawala dealers. On the basis of information received by Assessing Officer, the Assessing Officer issued notice under section 148 dated 19.03.2013. The notice was not served upon the assessee; thereafter notice under section 143(2) and 141(1) was issue .....

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..... ce was restricted to 12.5% of the alleged bogus purchases. The ld. AR of the assessee submits that it is settled law that no penalty is leviable on adhoc disallowance. Therefore, the order of ld. CIT(A) in directing the Assessing Officer for restricting the penalty on the partial disallowance is also liable to be set-aside. 5. On the other hand, the ld. DR for the revenue supported the order of lower authorities below. 6. We have considered the rival submission of the parties and have gone through the orders of authorities below. We have also deliberated on the various case laws referred and relied by lower authorities. We have noted that in appeal in quantum assessment, the co-ordinate bench of this Tribunal in cross appeal for Assessmen .....

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