https://www.taxtmi.com/highlights?id=97018 The text examines imposition of penalty under s.271(1)(c) for bogus purchases and states the controlling legal point that an Assessing Officer must form a clear subjective satisfaction that the assessee consciously concealed particulars of income or deliberately furnished inaccurate particulars before levying penalty; mere ad hoc estimation of profit in bogus purchases does not suffice. The appellate authority reduced the added profit percentages, and the article concludes that where the AO restricted profit element by estimation without a finding of deliberate concealment or inaccurate particulars, penalty could not be sustained, resulting in a decision favorable to the assessee. en-us Thu, 19 Feb 2026 14:08:13 +0530 Thu, 19 Feb 2026 14:08:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=97018 The text examines imposition of penalty under s.271(1)(c) for bogus purchases and states the controlling legal point that an Assessing Officer must form a clear subjective satisfaction that the assessee consciously concealed particulars of income or deliberately furnished inaccurate particulars before levying penalty; mere ad hoc estimation of profit in bogus purchases does not suffice. The appellate authority reduced the added profit percentages, and the article concludes that where the AO restricted profit element by estimation without a finding of deliberate concealment or inaccurate particulars, penalty could not be sustained, resulting in a decision favorable to the assessee. Highlights Income Tax Thu, 19 Feb 2026 14:08:13 +0530 https://www.taxtmi.com/highlights?id=97018