Case Law Details
Sabara Impex Ltd Vs ITO (ITAT Mumbai)
ITAT Mumbai held that penalty under section 271(1)(c) of the Income Tax Act is leviable as incomes were not offered to taxation with a dishonest intention to conceal the income and evade tax.
Facts- A survey was conducted by DDIT in the case of M/s Geekay Exim India Ltd. During the course of the survey, it was found that various concerns of the group were engaged in fictitious trading of pharmaceutical goods without actual delivery. A statement u/s 131 was recorded of Shri Rais Ahmed, director of M/s Geekay Exim India Ltd. Shri Rais Ahmed is also a director in the assessee company.
Notably, all the goods purchased by the assessee were sold to one single party M/s Ebers Pharmaceuticals Ltd. These purchases and sales were not supported by any delivery challans or proof of transportation. No payments had been made for these purchases and no confirmation was submitted for sundry creditors in respect of the above-mentioned parties.
Based on above mentioned facts the assessment was reopened u/s 148 of the IT ACT and a notice u/s 148 was issued on 21-03-2001. In response to this notice assessee replied vide letter dated 26-03-2001 that the original return filed on 01-12-1997 be treated as return of income filed in compliance to notice u/s 148. The assessment order was passed u/s 143(3) r.w.s. 147 on 26-03-2002 assessing the total income at Rs 2,43,22,330/-.
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