https://www.taxtmi.com/caselaws?id=770245 ITAT Surat set aside penalty u/s 271(1)(c) levied on estimated addition of 5% on bogus purchases from Rajendra Jain Group concerns. The AO had disallowed entire purchases but CIT(A) restricted disallowance to 5% on estimation basis. Following Subhash Trading Co. and Mun Gems precedents, ITAT held penalty cannot be levied where addition is made on estimated basis rather than actual concealment or furnishing of inaccurate particulars. Appellant's grounds were allowed and CIT(A)'s order set aside. en-us Tue, 06 May 2025 00:00:00 +0530 Thu, 08 May 2025 09:13:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770245 ITAT Surat set aside penalty u/s 271(1)(c) levied on estimated addition of 5% on bogus purchases from Rajendra Jain Group concerns. The AO had disallowed entire purchases but CIT(A) restricted disallowance to 5% on estimation basis. Following Subhash Trading Co. and Mun Gems precedents, ITAT held penalty cannot be levied where addition is made on estimated basis rather than actual concealment or furnishing of inaccurate particulars. Appellant's grounds were allowed and CIT(A)'s order set aside. Case-Laws Income Tax Tue, 06 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770245