Shanti Prime Publication Pvt. Ltd.
Sec. 271(1)(c) of Income Tax Act, 1961— Penalty — Revenue filed appeal against the order of the CIT (Appeals) dated 03.12. 2018 for the Assessment year 2009-2010. Assessee an individual engaged in the business of “Manufacturing and trading of Machinery parts” filed return of income. Assessment was reopened u/s. 147 of the Act and reassessment was completed on 19.02.2014 u/s. 143(3) r.w.s 147 of the Act. . While completing the reassessment the Assessing Officer treated purchases of Rs.22,82,508/- made from various dealers as non- genuine on the basis of the information received from Sales Tax Department, Government of Maharashtra that assessee has received accommodation entries from those parties’ without making any purchases but made purchases only in gray market. The Assessing Officer treated such purchases from various parties as non-genuine as the assessee could not produce the parties and also could not establish the movement of goods. Thus, the Assessing Officer estimated the profit element from the non-genuine purchases at 15% and brought to tax. The Assessing Officer initiated the penalty proceedings and levied penalty u/s. 271(1)(c) of the Act stating that the assessee has furnished inaccurate particulars of its income within the meaning of section 271(1)(c) of the Act. On appeal the Ld.CIT(A) deleted the penalty. Against this order of the Ld.CIT(A), revenue filed appeal. the Assessing Officer has only estimated the Gross Profit on the alleged non-genuine purchases without there being any conclusive proof of concealment of income or furnishing inaccurate particulars of such income. Thus, tribunal do not observe any infirmity in the order passed by the Ld.CIT(A) in deleting the penalty u/s. 271(1)(c) of the Act levied by the Assessing Officer. Grounds raised by the revenue were rejected. Thus, the appeal of the revenue dismissed. ---ITO vs. SHRI PREMKUMAR SHEHGAL. 23 ITCD Online 32 (MUM)