https://www.taxtmi.com/caselaws?id=754036 ITAT Mumbai ruled in favor of the assessee regarding penalty u/s 271(1)(c) on estimated additions from bogus purchases. The AO estimated profit at 9% from hawala transactions, reduced to 5% by CIT(A). The tribunal held that penalty cannot be sustained on estimated additions since the assessee failed to substantiate documents rather than furnishing inaccurate particulars. Following precedents in similar cases, penalty was deleted. However, the tribunal rejected the assessee's argument that revenue's appeal was invalid due to low tax effect, allowing revenue to appeal penalty matters related to additions based on specified authority information. en-us Mon, 27 May 2024 00:00:00 +0530 Fri, 14 Jun 2024 15:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754036 ITAT Mumbai ruled in favor of the assessee regarding penalty u/s 271(1)(c) on estimated additions from bogus purchases. The AO estimated profit at 9% from hawala transactions, reduced to 5% by CIT(A). The tribunal held that penalty cannot be sustained on estimated additions since the assessee failed to substantiate documents rather than furnishing inaccurate particulars. Following precedents in similar cases, penalty was deleted. However, the tribunal rejected the assessee's argument that revenue's appeal was invalid due to low tax effect, allowing revenue to appeal penalty matters related to additions based on specified authority information. Case-Laws Income Tax Mon, 27 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754036