2024 (3) TMI 1011

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..... 3 (4) TMI 678 - ITAT MUMBAI] no penalty u/s 271(1)(c) is leviable on estimated additions. Thus the impugned order deleting the penalty levied u/s 271(1)(c) of the Act is upheld. As a result, grounds raised by the Revenue are dismissed.
Shri B.R. Baskaran, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : None For the Revenue : Shri Manoj Kumar Singh ORDER .....

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..... ntal Representative ("learned DR") and the material available on record. 4. We have considered the submissions of the learned DR and perused the material available on record. During the year under consideration, the assessee had shown purchases of Rs. 23,40,260 from various parties. Vide assessment order passed under section 143(3) of the Act, the Assessing Officer ("AO"), in the absence of suffi .....

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..... ppellant. In this case addition has been made on estimate basis on bogus purchases. Similar issue has came up before ITAT, Mumbai in the case of Mukesh Shaligram Sharda vs ITO, ITA No.1907 & 1908/Mum/ 2021, for AY 19-20, vide order dated 22.02.2023. Hon'ble ITAT has held as under. "3. The fact in brief are that during the course of assessment proceedings, the Assessing Officer had disal .....

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..... e bogus purchases, however, did not doubt the sales made against such purchases. We observe that the Tribunals in various decisions have held that where sales are not disputed, entire alleged bogus purchases cannot be disallowed and only the gross profit on the alleged purchases to be disallowed. After taking into consideration the various decisions of the Tribunal that no penalty under section 27 .....

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..... round of appeals are treated as disposed off accordingly." 6. Since the findings of the learned CIT(A) are based on the decision of the coordinate bench of the Tribunal, we do not find any infirmity in the same. Accordingly, the impugned order deleting the penalty levied under section 271(1)(c) of the Act is upheld. As a result, grounds raised by the Revenue are dismissed. 7. In the result, the .....

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