https://www.taxtmi.com/caselaws?id=266430 The ITAT upheld the CIT(A)'s decision to delete the penalty of Rs. 22,63,450 imposed under section 271(1)(c) of the Income Tax Act, 1961. The penalty was deleted based on the failure to establish the genuineness of purchase parties and authenticate entries in the books of account. The ITAT agreed with the CIT(A) that penalties should not be imposed solely on the basis of gross profit additions and that penalty initiation without satisfaction during assessment was unjustified. The penalty was deemed unsustainable as it was based on an estimate of gross profit rates, leading to the dismissal of the Revenue's appeal and ruling in favor of the Assessee. en-us Tue, 01 Sep 2015 00:00:00 +0530 Tue, 20 Oct 2015 07:49:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=266430 The ITAT upheld the CIT(A)'s decision to delete the penalty of Rs. 22,63,450 imposed under section 271(1)(c) of the Income Tax Act, 1961. The penalty was deleted based on the failure to establish the genuineness of purchase parties and authenticate entries in the books of account. The ITAT agreed with the CIT(A) that penalties should not be imposed solely on the basis of gross profit additions and that penalty initiation without satisfaction during assessment was unjustified. The penalty was deemed unsustainable as it was based on an estimate of gross profit rates, leading to the dismissal of the Revenue's appeal and ruling in favor of the Assessee. Case-Laws Income Tax Tue, 01 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=266430