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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 ..... e incorrect or trading results have been disturbed. It is not a case that in the course of any enquiry conducted by the AO, parties have denied the transaction or it has been found that assessee has made these purchases outside the books. The sources of purchases are from the books and through banking channels and quantitative details of purchases have been accepted. Once the quantitative details of purchases and the corresponding quantitative sales have not been disturbed and has been accepted, then there cannot be any case for levy of penalty on account of alleged bogus purchases. Ultimately, the AO held that at the most there could be element of suppression of gross profit on the purchases, but such estimated addition alone cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. 3. The brief in facts are that, the assessee in dealer in timber and wooden items and it is not disputed that the entire purchase and sales have been recorded in the books of account. For the A.Y. 2009-10, Assessee has filed the return of income on 18.09.2010, for the A.Y. 2010-11 the same was duly processed u/s 143(1). Subsequently, based on certain information rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 penalty proceedings u/s 271(1)(c) being quasi criminal proceeding, the standard of evidence required is much higher than in assessment proceedings u/s 143(3). The Assessee during assessment proceedings u/s 143(3) could not produce the name of the supplier/parties, the genuineness of purchase and also failed to prove to the assessment authority. The AO has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 has made the purchases and sales through brokers. All the payments made have been through banking channels and there is no dispute regarding the quantitative statement of the purchases along with the bills and corresponding sales along with the copies of proceeding bills. None of these evidences or documents or the copies of sales bills or the quantit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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