https://www.taxtmi.com/highlights?id=78108 The ITAT Mumbai ruled on penalty u/s 271(1)(c) for estimation of income on bogus purchases. The tribunal held that penalty cannot be levied on additions made on an estimate basis unless clear proof of concealment or furnishing inaccurate particulars is shown. As the addition was based on 6% of unproved purchases, considered an estimate, the penalty was deemed unjustified. Therefore, the penalty u/s 271(1)(c) was deleted, allowing the assessee's appeal. en-us Tue, 04 Jun 2024 08:04:18 +0530 Tue, 04 Jun 2024 08:04:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=78108 The ITAT Mumbai ruled on penalty u/s 271(1)(c) for estimation of income on bogus purchases. The tribunal held that penalty cannot be levied on additions made on an estimate basis unless clear proof of concealment or furnishing inaccurate particulars is shown. As the addition was based on 6% of unproved purchases, considered an estimate, the penalty was deemed unjustified. Therefore, the penalty u/s 271(1)(c) was deleted, allowing the assessee's appeal. Highlights Income Tax Tue, 04 Jun 2024 08:04:18 +0530 https://www.taxtmi.com/highlights?id=78108