9911796707
TMI Blog2021 (9) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... dent and distinct proceedings and confirmation of an addition cannot on a standalone basis justify imposition/upholding of a penalty u/s. 271(1)(c) of the Act. Adopting the same logic, we are of the considered view that unless a specific exception is provided in the circular w.r.t penalty also, it could by no means be construed that penalty was to be treated at par with the quantum addition. As is discernible from Para 10(e) of the aforesaid CBDT Circular No. 3/2018 (as amended on 20.08.2018), the same applies only to additions which were based on information received from external sources. Since the levy of penalty by no means could be construed as an addition within the meaning of Para 10(e) of the aforesaid circular, therefore, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 3. As observed by us hereinabove, it is the claim of the assessing officer, that as the issue involved in the appeal in question pertains to a penalty that was imposed u/s. 271(1)(c) of the Act in respect of addition of bogus purchases that was made on the basis of information received from the Sales Tax Authorities i.e. an external agency, therefore, pursuant to the exception carved out in Para 10 of the CBDT Circular No. 3/2018, dated 11.07.2018 the appeal was maintainable, and had wrongly been summarily dismissed on the ground of low tax effect therein involved. 4. We have heard the ld. Departmental Representative, and find, that while disposing off the captioned appeal vide an order dated 21.08.2019 liberty was granted to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmation of an addition cannot on a standalone basis justify imposition/upholding of a penalty u/s. 271(1)(c) of the Act. Adopting the same logic, we are of the considered view that unless a specific exception is provided in the circular w.r.t penalty also, it could by no means be construed that penalty was to be treated at par with the quantum addition. As is discernible from Para 10(e) of the aforesaid CBDT Circular No. 3/2018 (as amended on 20.08.2018), the same applies only to additions which were based on information received from external sources. As noticed by us hereinabove, since the levy of penalty by no means could be construed as an addition within the meaning of Para 10(e) of the aforesaid circular, therefore, we do not find any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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