The Tax Publishers2020 TaxPub(DT) 5536 (Mum-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Since CIT(A) had deleted the penalty levied under section 271(1)(c), by following the decisions of Co-ordinate Benches, wherein Tribunal had held that where the addition is made on estimate basis, penalty under section 271(1)(c) cannot be imposed, accordingly, AO was directed to delete the penalty levied under section 271(1)(c).

Penalty under section 271(1)(c) - Bogus purchases - CIT(A) sustained addition of 12.5% made by AO -

AO passed the assessment order under section 143 (3) read with section 147 after making addition of 12.5% of the bogus purchases shown by the assessee. Accordingly, AO initiated proceedings under section 271(1)(c) and imposed penalty. CIT(A) after hearing the assessee deleted the penalty by following the various decisions of the ITAT. Held: CIT(A) had deleted the penalty levied under section 271(1)(c), by following the decisions of the Co-ordinate Benches wherein the Tribunal had held that where the addition is made on estimate basis, penalty under section 271(1)(c) cannot be imposed. Since CIT(A) was based on the decisions of Co-ordinate Benches rendered in the cases discussed by CIT(A), and accordingly, AO was directed to delete the penalty levied under section 271(1)(c).

Followed:Deepak Gogri v. ITO [ITA No. 1396/Mum/2017 dated 23-11-2017] and Dy. CIT v. Unisynth Chemicals [1TA No. 5967/Mum/2014 dated 11-1-2017].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12



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