9911796707
TMI Blog2024 (10) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty of Rs. 1,40,050/- u/s. 271(1)(c) of Income Tax Act, 1961 for furnishing inaccurate particulars of income. 2. The Learned C.I.T (Appeals), NFAC has erred in law and on facts and circumstances of the case in not considering the action of the Assessing officer (A.O) in initiating penalty for furnishing inaccurate particulars of income, whereas the A.O vide notice issued u/s. 274 r.w.s. 271 of the Act dated 14-03- 2016 has initiated penal ty proceedings u/s. 271(1)(c) for concealment of income as well as for furnishing inaccurate particulars of income, thus the penal ty order passed is bad in law. 3. The Learned C.I.T. (Appeals), NFAC has erred in law and on facts and circumstances of the case in upholding the passing of Penal t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to prove that the purchase transactions are genuine. In compliance the assessee has filed written submissions on various dates in support of the claim but the A.O. was not satisfied with the reply and supporting documents. Finally the A.O. has estimated profit element on non-genuine purchases @ 12.5% which works out to Rs. 11,33,097/-and assessed the total income of Rs. 15,85,460/- and passed the order u/s 143(3) r.w.s 147 of the Act on 14.03.2016. 3. Subsequently, the A.O. has initiated penalty proceedings u/s 271(1)(c) of the Act, Since assessee has entered into bogus purchase transactions, the A.O relied on the findings in the scrutiny assessment and the assessee was provided adequate opportunity of hearing and the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O to compute the profit @ 5% on the non genuine purchases. The Ld.AR contentions are that the penalty cannot be levied on the estimated income and the Ld.AR supported the submissions with the judicial decisions, paper book and synopsis and prayed for allowing the assessee appeal. Per Contra, the Ld.DR relied on the order of CIT(A). 6. We heard the rival submissions and perused the material on record. The sole crux of the disputed issue is with respect to levy of penalty u/s 271(1)(c) of the Act by the A.O based on the assessment order under section 143 r.w.s 147 of the Act. We find the A.O has made adhoc disallowance of bogus purchases on estimation of income but has accepted the sales in the books of accounts. We are of the opinion, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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