PRATAP UTTAM PUROHIT,MUMBAI vs. INCOME TAX OFFICER 42(1)(1), MUMBAI
IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH
MUMBAI
BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER
&
SMT RENU JAUHRI, ACCOUNTANT MEMBER
Pratap Uttam Purohit
307, Jalaram Business
Centre
Ganjawala Lane
Chamunda Circle
Borivali West
Mumbai-400 092
Vs. Income
Tax
Officer
42(1)(1), Mumbai
PAN/GIR No.AHCPP6451F
(Appellant)
..
(Respondent)
Assessee by Shri Bharat Kumar
Revenue by Shri Mahesh Pamnani
Date of Hearing
06/01/2025
Date of Pronouncement 07/01/2025
आदेश / O R D E R
PER AMIT SHUKLA (J.M):
The aforesaid appeal has been filed by the assessee against order dated 27/09/2024 passed by ld. CIT(A)-48, Mumbai in relation to the penalty proceedings u/s.271(1)(c) for the A.Y.2007-08. Pratap Uttam Purohit
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2. Assessee is mainly aggrieved by levy of penalty of Rs.4,25,000/- on account of estimated GP rate of alleged bogus purchases.
3. The brief facts are that assessee had filed his return of income on 31/10/2007 declaring total income of Rs.65,47,581/-.
The case was later reopened u/s.147 on the basis of information received from DDIT (Investigation) that assessee has availed some alleged bogus bills from hawala dealers amounting to Rs.1,10,02,460/-. In the assessment order passed u/s.143(3) r.w.s. 147 dated 30/03/2015, addition of Rs.13,75,308/- was made by applying GP rate of 12.5% on such alleged bogus purchases. In the quantum proceedings upto the stage of the Tribunal, the GP rate has been reduced to 2% of the alleged bogus purchases and accordingly, the quantum addition was substantially reduced to Rs.2,20,000/-. However, the ld. AO had levied the penalty on addition of Rs.13,75,308/- of Rs.4,25,000/-
Even the ld. CIT (A) has confirmed the said penalty despite the fact that in the quantum proceedings the addition itself was reduced and therefore, the quantum of penalty confirmed by him at Rs.4,25,000/- itself was erroneous.
4. On perusal of the orders it is seen that, nowhere the ld. AO had disputed the fact that these purchases were made from the sources declared in the books of accounts and corresponding sales and quantity tally has not been disturbed. The addition was made by applying the GP rate by the ld. AO which has been substantively reduced by the Tribunal, i.e., from 12.5% to 2%. In Pratap Uttam Purohit
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such a case on estimation of GP on adhoc basis, no penalty can be levied u/s. 271(1)(c), accordingly, the penalty confirmed by the ld. CIT(A) is deleted.
In the result, appeal of the assessee is allowed.
Order pronounced on 7th January ,2025. (RENU JAUHRI) (AMIT SHUKLA)
ACCOUNTANT MEMBER
JUDICIAL MEMBER
Mumbai; Dated 07/01/2025
KARUNA, sr.ps
Copy of the Order forwarded to :
BY ORDER,
(Asstt.