https://www.taxtmi.com/caselaws?id=462046 ITAT Mumbai held that penalty under section 271(1)(c) cannot be imposed when income addition is made on estimated basis. The AO had added 5% of alleged bogus purchases as estimated income. The tribunal ruled that penalty provisions for concealment of income or furnishing inaccurate particulars do not apply to estimated additions, as the quantification is admittedly only an estimate. Following established legal principle and precedent, the tribunal set aside the penalty order and decided in favor of the assessee. en-us Thu, 03 Oct 2024 00:00:00 +0530 Fri, 16 May 2025 19:44:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462046 ITAT Mumbai held that penalty under section 271(1)(c) cannot be imposed when income addition is made on estimated basis. The AO had added 5% of alleged bogus purchases as estimated income. The tribunal ruled that penalty provisions for concealment of income or furnishing inaccurate particulars do not apply to estimated additions, as the quantification is admittedly only an estimate. Following established legal principle and precedent, the tribunal set aside the penalty order and decided in favor of the assessee. Case-Laws Income Tax Thu, 03 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462046