ITO WARD 3 (4), THANE vs. M/S VIKAS SALES CORPORATION, THANE

O R D E R Per Shamim Yahya, A. M.: These are appeals by the revenue against the respective order's of learned CIT(A), wherein following penalty levied u/s.271(l)(c) has been deleted :- Assessment year Amount of Penalty 2009-10 7,06,127 2010-11 20,82,225 2011-12 10,48,756

2 to 7995/Mum/2019 (AYs. 2009-10 to 2011-12) ITO vs. M/s. Vikas Sales Corporation 4. We have heard the ld. DR and perused the records. As clear from the facts recorded above, the disallowance has been made on an estimated basis on account of the non-production of suppliers before the assessing officer. The purchase vouchers were duly produced and the payments were through banking channel. In these background, in our considered opinion, the assessee cannot be visited with the rigours of penalty u/s.271(1)(c). As a matter of fact, on many occasions, on similar circumstances, in quantum proceedings, the disallowance itself has been deleted. In our considered opinion, on the facts and circumstances of the case, the assessee cannot be said to have been guilty of concealment or furnishing of inaccurate particulars of income. In this regard, we draw support from the decision of a larger bench of the Hon’ble Supreme Court in the case of Hindustan Steel Ltd. V. State of Orissa (1972) 82 ITR 26 (SC), wherein it was held that the authority may not levy the penalty if the conduct of the assessee is not found to be contumacious.