https://www.taxtmi.com/caselaws?id=395050 The ITAT Mumbai upheld the decision of the Ld.CIT(A) to delete the penalty levied under Section 271(1)(c) of the Income Tax Act. The Tribunal ruled that penalty cannot be imposed when an estimation of Gross Profit is made, emphasizing that in cases of ad-hoc estimation of profit on certain purchases treated as unexplained expenditure, there is no concealment of income or furnishing of inaccurate particulars. The Tribunal further held that penalties cannot be imposed when additions are made on an estimate basis, citing relevant precedents to support this view. en-us Fri, 28 Feb 2020 00:00:00 +0530 Mon, 04 May 2020 12:43:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395050 The ITAT Mumbai upheld the decision of the Ld.CIT(A) to delete the penalty levied under Section 271(1)(c) of the Income Tax Act. The Tribunal ruled that penalty cannot be imposed when an estimation of Gross Profit is made, emphasizing that in cases of ad-hoc estimation of profit on certain purchases treated as unexplained expenditure, there is no concealment of income or furnishing of inaccurate particulars. The Tribunal further held that penalties cannot be imposed when additions are made on an estimate basis, citing relevant precedents to support this view. Case-Laws Income Tax Fri, 28 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395050