TaxTMI 
TaxTMI 
The AO treat 25% of unverifible purchases as Income and trading addiion was made . Whether the AO can imposed penelty u\s 271(1)C or not . if not provide suitable case laws if any available
Case law - imposing penelty u\s 271(1)C
13 Jan 2010 
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Penalty under section 271(1)(c) should not follow mere technical additions; bogus transactions justify penalty.
Whether a penalty under section 271(1)(c) is leviable depends on the factual nature of unverifiable purchases: technical additions despite corroborative stock records should not attract penalty, whereas fabricated or bogus transactions justify penalty; mere non-availability of suppliers requires the Assessing Officer to trace and assess suppliers rather than penalise the purchaser. (AI Summary)
Whether a penalty under section 271(1)(c) is leviable depends on the factual nature of unverifiable purchases: technical additions despite corroborative stock records should not attract penalty, whereas fabricated or bogus transactions justify penalty; mere non-availability of suppliers requires the Assessing Officer to trace and assess suppliers rather than penalise the purchaser. (AI Summary)