https://www.taxtmi.com/caselaws?id=753343 ITAT Mumbai ruled in favor of the assessee regarding penalty under section 271(1)(c) for bogus purchases. The CIT(A) had restricted the addition to 12.5% of bogus purchases based on information from Maharashtra Sales Tax Department identifying five hawala parties providing accommodation bills. The tribunal held that since the addition was made on estimated basis and the assessee had furnished all relevant information without knowledge that purchases were bogus at the time of recording, penalty could not be levied. The CIT(A)'s order deleting the penalty was confirmed. en-us Tue, 28 May 2024 00:00:00 +0530 Thu, 30 May 2024 10:45:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753343 ITAT Mumbai ruled in favor of the assessee regarding penalty under section 271(1)(c) for bogus purchases. The CIT(A) had restricted the addition to 12.5% of bogus purchases based on information from Maharashtra Sales Tax Department identifying five hawala parties providing accommodation bills. The tribunal held that since the addition was made on estimated basis and the assessee had furnished all relevant information without knowledge that purchases were bogus at the time of recording, penalty could not be levied. The CIT(A)'s order deleting the penalty was confirmed. Case-Laws Income Tax Tue, 28 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753343