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TMI Blog2024 (7) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... particulars of income or has submitted inaccurate particulars of income so as to attract Section 271(1)(c) of the Act. Admittedly, the addition has been made on estimate basis, therefore, the ratio of judgment of Parasamal Babulal Jain [ 2011 (9) TMI 398 - KARNATAKA HIGH COURT ] and various pronouncements of the judicial ITAT covers the facts of the present case of the assessee. Since the addition was made on the estimate basis and for the aforesaid discussion, the penalty is not sustainable and rightly deleted by the CIT(A). We find no illegality in the order of the Ld. CIT(A) and same is accordingly confirmed. Decided against revenue. - MS. PADMAVATHY S., ACCOUNTANT MEMBER AND SHRI. RAJ KUMAR CHAUHAN, JUDICIAL MEMBER For the Assessee : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounting to Rs. 37,19,972/- on account of no genuine purchases and unexplained purchases, hence, the provisions of Section 271(1)(c) of the Act were attracted. The said order of imposing penalty was challenged before the Ld. CIT(A), who disposed off the appeal by the impugned order and has deleted the penalty imposed by the Ld. AO on the ground that the additions were made on estimate basis and followed the decision of Hon'ble ITAT, Mumbai in the case of Deepak Gogri Vs. ITO Ward 25(3)(2) in ITA No. 1396/M/2017, dated 23.11.2017. Aggrieved by the order of the Ld. CIT(A), the department is in appeal before us and has raised the following grounds of appeal. 1. Whether on the facts and circumstances of the case and in law whether the ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. AO and the assessee has failed to do so. The Ld. DR has therefore relied upon the order of the Ld. AO in support of his arguments stating that the penalty levied is legally justified. 4. The Ld. AR on behalf of the assessee has argued that since the addition was made on estimate basis, therefore, the penalty levied u/s. 271(1)(c) is not legally sustainable. The Ld. AR has relied upon the case of Coordinate Bench i.e., Shri. Hitesh S. Shah Vs. ITO 25(2)(4), ITA No. 3423/Mum/2017, order dated 19.09.2010. The Ld. AR has taken us to the relevant portion of para no. 6 which reads as under: 6. . It was further averred by the ld. AR that as disallowance of 12.5% of the aggregate value of the purchases under consideration made by the A.O. was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on estimate basis. If no facts are brought on record that any income has been concealed by the assessee or the assessee has furnished inaccurate particulars. It is because of the disallowance of the expenditure the total amount representing total income is enhanced to the extent of disallowance. Conditions which are to be fulfilled before section 271(1)(c) is attracted do not exist. 6. In this case as is evident from the observation of the para 5.1 of the Ld. AO s order, the addition was made on estimation of total turnover after rejecting the books of accounts. Notice u/s. 133(6) were also issued to the various purchase parties and all the notice were returned by the postal authority and the assessee has not produced the party to confirm t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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