https://www.taxtmi.com/caselaws?id=462053 ITAT Mumbai upheld CIT(A)'s deletion of penalty under section 271(1)(c) imposed on assessee who allegedly accepted accommodation entries from hawala traders. Despite Sales Tax Department proving parties were involved in providing bogus purchase entries, Tribunal found penalty on ad-hoc estimated income unjustified. For AY 2009-10, addition was restricted to 2% of alleged bogus purchases. Tribunal relied on coordinate bench precedent for AY 2011-12 and 2012-13, holding penalty on gross profit estimated ad-hoc basis unsustainable. Decision favored assessee. en-us Mon, 30 Dec 2024 00:00:00 +0530 Sat, 17 May 2025 14:06:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462053 ITAT Mumbai upheld CIT(A)'s deletion of penalty under section 271(1)(c) imposed on assessee who allegedly accepted accommodation entries from hawala traders. Despite Sales Tax Department proving parties were involved in providing bogus purchase entries, Tribunal found penalty on ad-hoc estimated income unjustified. For AY 2009-10, addition was restricted to 2% of alleged bogus purchases. Tribunal relied on coordinate bench precedent for AY 2011-12 and 2012-13, holding penalty on gross profit estimated ad-hoc basis unsustainable. Decision favored assessee. Case-Laws Income Tax Mon, 30 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462053