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TMI Blog2023 (8) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the fact that the assessee had consciously suppressed the particulars of purchases made in grey market and instead furnished inaccurate particulars of income by disclosing higher purchases from hawala entry providers. 2. It is respectfully submitted that the penalty was levied for the additions made on the basis of information received from Law enforcement agency of the State Government of Maharashtra i.e. Sale Tax Department. 3. It is humbly requested that present appeal is being filed in accordance with the CBDT's Instruction No. 3/2018 dated 11/07/2018 amended vide letter dated 20.08.2018 as per para 10(e) of the said circular. Therefore, the order of the CIT (A) may be vacated & that of the Assessing Officer may be restored. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning stock, purchase, sale and closing stock at the time of assessment. The AO, however, on non-production of the said parties, made an estimated addition @ 12.5% of the amount of bogus purchases of Rs. 23,97,933/-. 5. The Ld. CIT (A), has deleted the penalty after observing and holding as under: 3.2 I have considered the submission of the Assessee and perused the penalty order. The appellant during assessment proceedings had stated that he was a dealer in Timber and other wooden items. The Assessee submitted various documentary evidences at the time of assessment. No discrepancies in these evidences/documents filed by the appellant were pointed out by the AO. 3.3 The penalty proceedings are different from assessment proceedings. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration of the submission of the appellant and the relevant records, penalty amounting to Rs. 92,620/- imposed u/s 271(1)(c) is deleted. The appeal of the assessee, is therefore, allowed. 6. None appeared on behalf of the Assessee. 7. After hearing the Ld. DR and on perusal of the impugned order, we find that penalty u/s 271(1)(c) has been levied on estimation of the gross profit on adhoc basis, at the rate of 12% on alleged bogus purchases and assessee's explanation has not been rebutted by the AO either during the assessment proceedings or penalty proceedings, that it has filed the entire details of purchases and sales, including purchase bills, sales bills and details of opening stock and closing stock and the manner in which assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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