https://www.taxtmi.com/caselaws?id=437223 The tribunal quashed the penalty imposed under section 271(1)(c) of the Income Tax Act for Assessment Years 2010-11 and 2011-12. The assessee successfully argued that the alleged bogus purchases were genuine, supported by proper documentation and payments through banking channels. As the addition to income was based on estimation and not concrete evidence, the tribunal ruled that penalties cannot be imposed in such cases, in line with legal precedents. Consequently, both appeals by the assessee were allowed, leading to the cancellation of the penalty. en-us Thu, 27 Apr 2023 00:00:00 +0530 Fri, 28 Apr 2023 17:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437223 The tribunal quashed the penalty imposed under section 271(1)(c) of the Income Tax Act for Assessment Years 2010-11 and 2011-12. The assessee successfully argued that the alleged bogus purchases were genuine, supported by proper documentation and payments through banking channels. As the addition to income was based on estimation and not concrete evidence, the tribunal ruled that penalties cannot be imposed in such cases, in line with legal precedents. Consequently, both appeals by the assessee were allowed, leading to the cancellation of the penalty. Case-Laws Income Tax Thu, 27 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437223