Full News
ITAT deleted penalty as payments had been made through bank
ITAT deleted penalty as payments had been made through bank
AO held that Gurera Synthetics Pvt Ltd had debited bogus purchases of Rs 7.5 lakhs from M/s JD Industries. AO made addition, and levied penalty. CIT(A) confirmed AO’s order. ITAT deleted penalty as payments had been made through bank, and rejection of bills by AO was not tenable.-500313
1. During the assessment proceedings u/s 143(3) (of Income Tax Act, 1961), AO observed that Gurera Synthetics Pvt Ltd had debited bogus purchases of Rs 7.5 lakhs from M/s J.D. Industries.
2. AO issued notices u/s 133(6) (of Income Tax Act, 1961) M/s J.D. Industries which returned back unserved.
3. AO treated the purchases as bogus and brought them to tax in quantum proceedings.
4. CIT(A) confirmed the addition in quantum proceedings.
5. Subsequently, AO levied penalty u/s 271(1)(c) (of Income Tax Act, 1961).
6. CIT(A) confirmed the penalty.
On appeal, the ITAT held as under:
7. The assessee company has also given plausible reasons for not having current address of the said M/s J D Industries that it has no dealing with said M/s J D Industries for last 3 years.
8. Hence it cannot be expected of the assessee company to give the current address of the said M/s J D Industries more-so when purchase bills are produced before the authorities below along with statement of account of said M/s J D Industries in the books of accounts of the assessee company and the payments are stated to have been made through banking channels through account payee cheques.
9. Similarly, Revenue by merely disbelieving purchase bills as submitted by the assessee company on the ground that all the bills so submitted carries signature of one person Mr D.Kumar or all the bills carried identical amount is also not sufficient for levying penalty u/s 271(1)(c) (of Income Tax Act, 1961) in the absence of finding leading to the irresistible conclusion of concealment of particulars income or furnishing of in-accurate particulars of income by the assesse company which the Revenue has not brought on record.
10. In our considered view, the penalty of Rs.2,77,195/- as levied u/s 271(1)(c) (of Income Tax Act, 1961) by the AO and confirmed by the CIT(A) cannot be sustained.
11. We order deletion of the penalty of Rs.2,77,195/- as levied u/s 271(1)(c) (of Income Tax Act, 1961) by the A.O. and as confirmed by the CIT(A).
Case Reference - M/s Gurera Synthetics Pvt Ltd vs ACIT.
IN THE INCOME TAX APPELLATE TRIBUNAL "G" BENCH, MUMBAI
BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND
SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER
I.T.A. No. 683 /Mum/2012
(Assessment Year : 2003-04)
×
