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TMI Blog2023 (10) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... ome or furnished any inaccurate particulars of income. The explanation of the Assessee and all the evidences filed before the authorities below have neither been rebutted nor has been found to be incorrect or assessee has failed to substantiate the explanation. Thus, levy of penalty on such estimated gross profit cannot be sustained and accordingly, in all the years penalty levied by the AO and sustained by the CIT(A) is directed to be deleted. Appeal of assessee allowed. - SHRI. AMIT SHUKLA, JM MS. PADMAVATHY S, AM For the Appellant : Mohammed Anas Siddique For the Respondent : Mahita Nair Sr. AR ORDER Per Bench: The aforesaid appeals have been filed by the Assessee against separate impugned order of dif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. The Ld. AO in the assessment orders has added the entire purchases as unexplained investment u/s. 69C for the various assessment years. The details of such additions are as under: AY: 2004-05 = 53,06,985/-, AY: 2005-06 = 20,07,549/-, AY: 2007-08 = 33,83,698/-, AY: 2008-09 = 1,3489,341/-, AY: 2009-10 =1,44,36,924/-. 4. In the quantum proceedings the Ld. CIT (A) confirmed the addition on account of alleged in proved purchases by estimating gross profit 10% on such purchases. In the second appeal, the Tribunal has restricted the addition by estimating the gross profit @ of 5% on the alleged unproved purchases. 5. Now, AO has levied penalty u/s. 271(1)(c), on estimated profit of 5% of the disputed purchases. Before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made by account payee cheques, and the material so purchased is sold, it cannot be inferred that no purchases are made and addition made to the returned income tantamount to concealment of any facts or submission or furnishing of inaccurate particulars of income to warrant levy of penalty under section 271(1)(c) of the Income-tax Act. Hence the penalty proceeding initiated may please be annulled. 6. However, this explanation has been rejected simply on the ground that that assessee could not prove the genuineness of the purchases. The Ld. CIT (A), after distinguishing the judgment cited by the Assessee held that there are various judgments where the addition is based on estimate concealment penalty can be levied. 7. Before us the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng channels and details quantitative statement of the purchases and the corresponding sales along with the copies of sales bills. None of these evidences or documents or the quantitative details or the corresponding sales has been found to be incorrect or trading results have been disturbed. Simply based on survey action in group concerns, who in turn have taken some accommodation entries or purchase bills entire adverse inference has been drawn. 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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