https://www.taxtmi.com/caselaws?id=756375 The ITAT Mumbai deleted penalty u/s 271(1)(c) imposed on estimated income additions. The assessee faced additions of 12.5% on purchase amounts due to alleged bogus purchases from parties issuing accommodation bills, as reported by Sales Tax Department. The tribunal held that penalties cannot be sustained on estimated additions, following precedent in Jatin Enterprises v. ACIT. Since the assessment was based on estimation rather than concrete evidence of concealment, the penalty was deemed unsustainable and deleted. Both grounds of the assessee's appeal were allowed. en-us Wed, 10 Jul 2024 00:00:00 +0530 Thu, 01 Aug 2024 20:47:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756375 The ITAT Mumbai deleted penalty u/s 271(1)(c) imposed on estimated income additions. The assessee faced additions of 12.5% on purchase amounts due to alleged bogus purchases from parties issuing accommodation bills, as reported by Sales Tax Department. The tribunal held that penalties cannot be sustained on estimated additions, following precedent in Jatin Enterprises v. ACIT. Since the assessment was based on estimation rather than concrete evidence of concealment, the penalty was deemed unsustainable and deleted. Both grounds of the assessee's appeal were allowed. Case-Laws Income Tax Wed, 10 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756375