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TMI Blog2021 (8) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... ars of income is proved. Therefore, in such scenario, no penalty under section 271(1)(c) of the Act could have been imposed. Maintainability of appeal on monetary limits - It is the case of the revenue that the appeals are protected under paragraph 10(e) of CBDT Circular No. 2/2018 dated 11.07.2018 - a careful reading of the relevant clause of the circular makes it clear that it is only applicable to the additions made based on information received from external sources like law enforcement agencies in the category of CBI, DRI etc. Presently, we dealing with proceeding for imposition of penalty u/s 271(1)(c) of the Act which is independent from the assessment proceedings. Therefore, it cannot be said that the penalty imposed is based o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er (AO) reopened the assessment under section 147 of the Act. In course of assessment proceedings, the AO called upon the assessee to prove purchases made from certain parties through supporting evidence. In compliance to the query raised, assessee furnished some supporting details. However, the AO was not fully satisfied with the documentary evidences furnished by the assessee. Thus, he ultimately treated purchases worth ₹ 1,34,25,500/- and ₹ 93,46,750/- in assessment years 2009-10 and 2010-11 respectively, as non-genuine and added back to the income of the assessee. Assessee contested the aforesaid additions before learned Commissioner (Appeals). Partly accepting the submissions of the assessee, learned Commissioner (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have considered rival submissions and perused the material on record. As could be seen from record, based on certain information available on record, the AO had treated certain purchases as non-genuine and added back to the income of the assessee. However, learned Commissioner (Appeals) has restricted the disallowance to the profit element embedded in the alleged-non genuine purchases, which got further enhanced by the Tribunal. Thus, ultimately, the additions leading to the imposition of penalty were made on estimate basis. It is further evident from the assessment order, in response to the notice issued under section 133(6) of the Act, some of the selling dealers responded and furnished the details of sales made by them. Thus, the admit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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