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TMI Blog2022 (6) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... r Singh appearing on behalf of the assessee submitted that the assessment for AY 2009-10 in the case of assessee was re-opened on the ground that the assessee had obtained bogus purchase bills from M/s Ankit Enterprises - Rs. 5,11,810/-, Raj Hans Steel - Rs. 77,444/- and Mukta Steel - Rs. 10,00,350/-. The Assessing Officer (AO) made addition of Rs. 15,89,604/- in respect of the entire alleged bogus purchases made by the assessee from the aforesaid three parties. The assessee carried the issue in appeal before the Tribunal in ITA No. 5113/Mum/2017. The Tribunal vide order dated 30.11.2018 estimated the addition in respect of bogus purchases to 12.5% of alleged purchases. The AO vide order dated 28.03.2019 levied penalty of 300% of the tax i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e quantum of addition that has been reduced by the Tribunal. 4. Both sides heard, orders of the authorities below examined. The assessee is in appeal against levy of penalty in respect of assessee's involvement in obtaining bogus purchase bills. In quantum proceedings, the AO made addition of the entire alleged bogus purchases. The matter travelled to the Tribunal, the Tribunal restricted the addition to 12.5% of the alleged bogus purchases. The addition has been made in the hands of assessee on account of bogus purchase merely on estimations. It is an accepted legal position that no penalty under section 271(1)(c) of the Act can be levied where additions are made on estimate. [Re: CIT Vs. Krishi Tyre Re-trading & Rubber Industries 360 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the irrelevant matter-vitiate the penalty proceedings? 181. It does. The primary burden lies on the Revenue. In the assessment proceedings, it forms an opinion, prima facie or otherwise, to launch penalty proceedings against the assessee. But that translates into action only through the statutory notice under section 271(1)(c), read with section 274 of IT Act. True, the assessment proceedings form the basis for the penalty proceedings, but they are not composite proceedings to draw strength from each other. Nor can each cure the other's defect. A penalty proceeding is a corollary: nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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