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TMI Blog2023 (8) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... t as alleged by the Ld. CIT(A), that assessee was indulged in availing accommodation entry of bogus purchases. Addition has been made on some estimate of profit element embedded in such purchases and therefore, on such adhoc estimate of GP rate, penalty u/s. 271(1)(c) is not warranted, especially when assessee has produced all the details and documentary evidences of purchases and corresponding sales and there is no tinkering with the trading result and overall gross profit have been accepted - Decided in favour of assessee. - I.T.A. No.586 & 585/Mum/2023 - - - Dated:- 10-5-2023 - SHRI AMIT SHUKLA, JM MS. PADMAVATHY S, AM For the Appellant by : Rajesh Kumar C Jain For the Respondent by :Mahita Nair Sr. AR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of gross profit of the purchases by the AO on the ground that, before the Ld. CIT(Appeals), the assessee has not pressed the appeal and accordingly, he levied penalty of Rs. 1,65,134/- in AY: 2009-10 and Rs. 43,021/- in AY: 2010-2011, for furnishing of inaccurate particulars of income. The Ld. CIT(Appeal) has confirmed the said penalty in his detail order running into 37 pages. 4. After hearing, Ld. DR and on perusal of impugned order, we find that before the authorities below to prove the genuine of the purchases, Assessee had submitted following documents and explanation. Copies of purchases bills issued by respective parties Copy of Ledger account Copies of delivery Challan provided by respective parties Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so produced stock register and also quantities the details of purchases, corresponding sales, therefore it cannot be held that the purchases were non genuine or any kind of penalty for furnishing of inaccurate particular sales can be levied on estimated GP rate of 12.5%. 6. Nothing has been proved beyond doubt as alleged by the Ld. CIT(A), that assessee was indulged in availing accommodation entry of bogus purchases. The addition has been made on some estimate of profit element embedded in such purchases and therefore, on such adhoc estimate of GP rate, penalty u/s. 271(1)(c) is not warranted, especially when assessee has produced all the details and documentary evidences of purchases and corresponding sales and there is no tinkering wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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