2017 (11) TMI 1928

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..... uth has been established. In fact, the AO proceeded to add to the returned income only the amount of profit element because of the fact that the sales effected by the assessee corresponding to the impugned purchases were accepted. Be that as it may, it is a case of mere non-substantiation of an expenditure and not a case where falsity has been proved to the hilt. Even if one has to go by the ma .....

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..... ated 14/08/2015. 2. The dispute in this appeal relates to penalty imposed under section 271(1)(c) of the Act amounting to ₹ 18,006/-. 3. A perusal of the order of the authorities below reveal that purchases effected by the assessee from four parties totalling to ₹ 4,66,133/- were found to be doubtful in view of the information received regarding the four parties from the Maharash .....

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..... hat the plea of the assessee before the lower authorities has been that the levy of penalty is not automatic and that the transactions of purchase effected from the four parties were well documented and the payments were also made through banking channels. After hearing the Ld. Departmental Representative, we find that there is no justification to levy the penalty under section 271(1)(c) of the Ac .....

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