https://www.taxtmi.com/caselaws?id=766428 ITAT Mumbai deleted penalties u/s. 271(1)(c) and 271AAB imposed on assessee for alleged bogus purchases and labour payments. The AO made additions under s. 69C for cash expenses, which were subsequently reduced by CIT(A) and further reduced by Coordinate Bench on estimate basis. Despite reductions indicating estimate-based additions, both AO and CIT(A) upheld penalties citing malafide intention. ITAT held that penalties cannot be imposed on estimate-based additions, following settled law. The tribunal noted AO's irresponsible approach despite having Coordinate Bench findings on record. All penalty additions were either reduced significantly or deleted entirely, confirming estimate basis. Appeal decided in favour of assessee with complete deletion of both penalties. en-us Thu, 20 Feb 2025 00:00:00 +0530 Tue, 25 Feb 2025 08:24:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766428 ITAT Mumbai deleted penalties u/s. 271(1)(c) and 271AAB imposed on assessee for alleged bogus purchases and labour payments. The AO made additions under s. 69C for cash expenses, which were subsequently reduced by CIT(A) and further reduced by Coordinate Bench on estimate basis. Despite reductions indicating estimate-based additions, both AO and CIT(A) upheld penalties citing malafide intention. ITAT held that penalties cannot be imposed on estimate-based additions, following settled law. The tribunal noted AO's irresponsible approach despite having Coordinate Bench findings on record. All penalty additions were either reduced significantly or deleted entirely, confirming estimate basis. Appeal decided in favour of assessee with complete deletion of both penalties. Case-Laws Income Tax Thu, 20 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766428