https://www.taxtmi.com/caselaws?id=463175 The ITAT Mumbai held that penalty under section 271(1)(c) cannot be levied where income additions are based on estimated or ad-hoc disallowance of bogus purchases. The assessee's failure to file explanations in penalty proceedings did not amount to furnishing inaccurate particulars of income. The AO's disallowance, relying on information from the Sales Tax Department and without doubting sales, was upheld, but penalty was not justified. The Tribunal followed the Bombay HC precedent in M/s Nikunj Eximp Enterprises and allowed the assessee's appeal, setting aside the penalty. en-us Wed, 30 Nov 2022 00:00:00 +0530 Mon, 11 Aug 2025 20:56:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463175 The ITAT Mumbai held that penalty under section 271(1)(c) cannot be levied where income additions are based on estimated or ad-hoc disallowance of bogus purchases. The assessee's failure to file explanations in penalty proceedings did not amount to furnishing inaccurate particulars of income. The AO's disallowance, relying on information from the Sales Tax Department and without doubting sales, was upheld, but penalty was not justified. The Tribunal followed the Bombay HC precedent in M/s Nikunj Eximp Enterprises and allowed the assessee's appeal, setting aside the penalty. Case-Laws Income Tax Wed, 30 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463175