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TMI Blog2022 (5) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... from Sales tax department Maharashtra. We are of the opinion that once the revenue accepts that penalty is levied on the basis of information from the outside agency/ department, the penalty is not sustained. The Ld. DR could not controvert the findings of the CIT(A) with any new cogent evidences or information to take different view. Accordingly, we are not inclined to interfere with the order of the Ld.CIT(A) and uphold the same and dismiss the grounds of appeal of the revenue . - ITA No. 2482, 2483 And 2484/Mum/2021 - - - Dated:- 4-5-2022 - Shri Pramod Kumar, Vice President And Shri Pavan Kumar Gadale, Judicial Member For the Appellant : Shri Love Kumar.DR For the Respondent : None ORDER PER PAVAN KUMAR GADALE J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has debited purchases from parties whi h did not make actual supply of goods and, thereby, falsified the books of accounts? 4. The appellant craves leave to amend or alter or add a new ground which may be necessary. 2. The brief facts of the case are that, the assessee is engaged in the business of trading in Iron and steel. The assessee has filed the return of income on 25.09.2009 for the A.Y2009-10 disclosing a total income of Rs.34,40,790/- and the return of income was processed u/s 143(1) of the Act. The Assessing officer (A.O) received the information from Sales Tax Department Maharashtra, the list of the persons who have provided entries for bogus purchase bills to the tax payers. On verification of the facts, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has filed an appeal with the CIT(A) on quantum addition of bogus purchases. Whereas, the CIT(A) has relied on the facts and judicial decisions and restricted the addition to the extent @ 8% of purchases, and on appeal, the Hon ble ITAT has restricted to @4%. The A.O. has considered these facts and observed that in spite of providing the opportunity, no explanations were filed in respect of penalty notice. The A.O. dealt on the findings of the scrutiny assessment and levied a penalty of Rs.3,74,872/- and passed the order u/s 271(1)(c) of the 5. Aggrieved by the penalty order, the assessee has filed an appeal with the CIT(A), the CIT(A) has considered the grounds of appeal, findings of the A.O and the submissions of the assessee and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hases. 8. We are of the opinion that when the addition is on estimated basis, penalty u/s 271(1)(c) of the Act cannot be levied on such adhoc estimated income. The disallowance of purchases on ad-hoc/estimated basis does not tantamount to furnishing inaccurate particulars of income under the provisions of Section 271(1) (c) of the Act. The A.O. has not doubted the sales and made disallowance of bogus purchases and we rely on the ratio of the Honorable Jurisdictional High Court in the case of M/s Nikunj Eximp Enterprises Vs Cit (W.P.No 2860 dated 18-06-2014). Further the assessing officer made an addition based on the information received from Sales tax department Maharashtra. We are of the opinion that once the revenue accepts that penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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