The Tax PublishersITA No. 4502/Mum/2019
2021 TaxPub(DT) 2579 (Mum-Trib)INCOME TAX ACT, 1961
Section 271(1)(c)
As decided in the case of National Textiles v. CIT 2001 164 CTR (Guj) 2009 : 2001 TaxPub(DT) 677 (Guj-HC), it was held that penalty was not leviable when the profit was added on estimation basis, therefore, following the same, penalty was not leviable on assessee.
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Penalty under section 271(1)(c) - Bogus purchases - Penalty could not be levied on estimated income -
AO received information from the DGIT(Inv.) that assessee had taken the bogus purchase entry from a party. Thereafter, the total income of the assessee was assessed by including the bogus purchases. Accordingly, AO levied penalty proceeding under section 271(1)(c). Held: High Court in the case of National Textiles v. CIT (2001) 164 CTR (Guj) 2009 : 2001 TaxPub(DT) 677 (Guj-HC) had held that penalty was not leviable when the profit was added on estimation basis. Therefore, following the same, penalty was not leviable on assessee.
Followed:Naresh Chand Agarwal v. CIT 2013 357 ITR 514 (All) : 2013 TaxPub(DT) 2457 (All-HC), CIT v. Simit P Sheth 2013 356 ITR 451 : 2013 TaxPub(DT) 2115 (Guj-HC), CIT v. Arjun Prasad Ajit Kumar (2008) 214 CTR (All) 355 : 2008 TaxPub(DT) 1419 (All-HC), National Textiles v. CIT 2001 164 CTR 2009 (Guj) : 2001 TaxPub(DT) 677 (Guj-HC), Shruti Fastners Ltd. v. DCIT [ITA No. 5374/Del/2012, dt. 24-4-2017], Rakeshkumar M. Gupta v. ITO [ITA No.2595 to 2600 /Mum/2015, dt. 3-2-2017], Dy. CIT v. Manohar Manak- ITA No. 5586/Mum/2015 dated 16-1-2017, Yash Raj Films Pvt. Ltd. v. Asstt. CIT ITA No. 7519/Mum/2013 dated 8-7-2015 and Dy. CIT v. Rishabh Impex Gulabdas & Co. [ITA No. 93/Mum/2011, dt. 10-4-2015].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
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