2021 (4) TMI 164

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..... ly made only on an estimated basis by placing reliance on the decision of CIT vs. Aero Traders Pvt. Ltd., [ 2010 (1) TMI 32 - DELHI HIGH COURT] , CIT vs. Vijaykumar Jain [ 2010 (4) TMI 386 - CHHATTISGARH HIGH COURT] , CIT vs. Subhash Trading Co. [ 1995 (11) TMI 37 - GUJARAT HIGH COURT] and MAHENDRA SINGH KHEDLA [ 2012 (3) TMI 568 - RAJASTHAN HIGH COURT] , the ld. CIT(A) held that no penalty u/s. .....

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..... matter of imposition of penalty u/s. 271(1)(c) of the Income Tax Act, 1961. 2. We have heard rival submissions and perused the materials available on record. We find that assessee is engaged in manufacturing of wide range of agro chemicals and pharmaceuticals intermediaries. The return of income for the A.Y. 2011-12 was filed by the assessee declaring business loss of ₹ 1,76,80,439/- unde .....

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..... ding Pvt. Ltd., and thus, no physical delivery of goods was taken by the assessee. The assessee submitted that though the only profit earned in these transactions was ₹ 23,544/- (₹ 3,09,00,626/- - ₹ 3,08,77,082/-), however, in order to purchase peace, the assessee came forward to offer 5% as its profit margin in these transactions and accordingly, vide letter dated 03/02/2014 fil .....

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..... e of CIT vs. Subhash Trading Co., reported in 221 ITR 110; decision of Hon'ble Punjab and Haryana High Court in the case of CIT vs. Harigopal Singh reported in 255 ITR 85; and the decision of Hon'ble Rajasthan High Court in the case of CIT vs. Mahendra Singh Khedla in ITA No. 174/2010, the ld. CIT(A) held that no penalty u/s. 271(1)(c) of the Act could be levied on an estimated addition an .....

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..... of the Revenue hereinabove, we do not deem it fit to get into other grounds raised by the assessee in its cross objections as they would be purely academic in nature. Accordingly, the cross objections raised by the assessee are dismissed as infructuous. 5. In the result, appeal of the Revenue is dismissed and Cross Objection of the assessee is dismissed. Order pronounced on 19/03/2021 by way .....

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