During year, Assessing Officer received information from sales-tax authorities and came to know that assessee had made bogus purchases from hawala parties .The AO has \u00a0added entire amount to income of assessee . However, Tribunal restricted quantum addition at 12.5 per cent of bogus purchases . \u00a0Pursuant to Tribunal\u2019s order penalty proceedings were initiated and penalty was levied . CIT(A) affirmed the order of the AO. On appeal the assessee contended that since quantum addition was estimated, no penalty should be levied on estimation of profit\u00a0 . Tribunal held that \u00a0since there were bogus purchases and only profit element had been added which meant that assessee had concealed income to that extent in garb of purchases which turned out to be bogus.\u00a0 Penalty order is affirmed .(AY. 2009 -10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 271(1)(c) : Penalty \u2013 Concealment – Information from sales-tax authorities – Bogus purchases \u2013 Hawala parties \u2013 Estimated additions \u2013 Quantum restricted to 12. 5% of bogus purchases – Penalty is leviable . [ S.69C ] S. 271(1)(c) : Penalty \u2013 Concealment – Information from sales-tax authorities – Bogus purchases \u2013 Hawala parties \u2013 Estimated additions \u2013 Quantum restricted to 12. 5% of bogus purchases – Penalty is leviable . [ S.69C ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-55488","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eqY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=55488"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55488\/revisions"}],"predecessor-version":[{"id":55489,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55488\/revisions\/55489"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}