https://www.taxtmi.com/caselaws?id=405293 The ITAT dismissed both appeals by the revenue, upholding the orders of the CIT(A) in reducing the addition for bogus purchase and in the penalty under section 271(1)(c) of the Income Tax Act. The ITAT emphasized that the Assessing Officer's lack of independent inquiry and the purchases being made from the grey market justified the reduction in the addition. Additionally, the ITAT found that the penalty under section 271(1)(c) was not warranted in cases where disallowances were made on an estimated basis without proper investigation. en-us Thu, 11 Mar 2021 00:00:00 +0530 Wed, 17 Mar 2021 09:10:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=405293 The ITAT dismissed both appeals by the revenue, upholding the orders of the CIT(A) in reducing the addition for bogus purchase and in the penalty under section 271(1)(c) of the Income Tax Act. The ITAT emphasized that the Assessing Officer's lack of independent inquiry and the purchases being made from the grey market justified the reduction in the addition. Additionally, the ITAT found that the penalty under section 271(1)(c) was not warranted in cases where disallowances were made on an estimated basis without proper investigation. Case-Laws Income Tax Thu, 11 Mar 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=405293