https://www.taxtmi.com/caselaws?id=195238 The assessee appealed against a penalty under section 271(1)(c) imposed by the AO for an addition to gross profit based on estimation. The CIT(A) upheld the penalty only on a specific amount, as the ITAT allowed a set off for bogus purchases against the gross profit addition. The ITAT confirmed the AO's determination that the books were unreliable due to bogus purchases and upheld the addition for bogus purchases but not for gross profit estimation. The AO was directed to calculate the penalty on the sum related to bogus purchases. The assessee's appeal was partially successful. en-us Fri, 15 Oct 2010 00:00:00 +0530 Mon, 23 Oct 2017 18:25:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=195238 The assessee appealed against a penalty under section 271(1)(c) imposed by the AO for an addition to gross profit based on estimation. The CIT(A) upheld the penalty only on a specific amount, as the ITAT allowed a set off for bogus purchases against the gross profit addition. The ITAT confirmed the AO's determination that the books were unreliable due to bogus purchases and upheld the addition for bogus purchases but not for gross profit estimation. The AO was directed to calculate the penalty on the sum related to bogus purchases. The assessee's appeal was partially successful. Case-Laws Income Tax Fri, 15 Oct 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=195238