9911796707
TMI Blog2024 (5) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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. - Shri Prashant Maharishi, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri S.L. Jain For the Revenue : Shri H.M. Bhatt ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the Revenue challenging the impugned order dated 04/05/2023, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ learned CIT(A) ], for the assessment year 2009-10, which in turn arose from the penalty order dated 23/03/2018 passed under section 271(1)(c) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act were initiated separately. After considering the submissions of the assessee, the AO vide order dated 23/03/2018 passed under section 271(1)(c) of the Act levied a penalty of Rs. 2,64,920. 5. The learned CIT(A), vide impugned order, deleted the penalty levied by the AO on the basis that the addition on account of bogus purchases is made on an estimated basis. Being aggrieved, the Revenue is in appeal before us. 6. During the hearing, the learned Departmental Representative submitted that since the addition to an extent of 10% of the aforesaid purchases has been affirmed by the Tribunal, therefore the penalty should be sustained to that extent. On the other hand, the learned Authorised Representative submitted that in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords, it is seen that the assessee has submitted the quantitative details of purchases alongwith stock register entry and corresponding export sales which was also verified from the customer appraisal report. Once, the source of payment of purchases have been made through books of accounts and through account payee cheques and there is corresponding sales, then merely because some adhoc GP rate has been applied on such alleged bogus purchases to factor in suppression of alleged gross profit, no penalty can be levied for furnishing of inaccurate particulars of income or concealing particulars of income, which ld. AO has held in his penalty order that penalty is being levied under both the limbs, which itself shows his satisfaction is vague. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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