2026 (4) TMI 835

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....thi, SR. DR ORDER PER SANDEEP SINGH KARHAIL, J.M. The Revenue has filed the present appeal against the impugned order dated 03.09.2025, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, ["learned CIT(A)"], which in turn arose from the penalty order passed under section 271(1)(c) of ....

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....issued, and proceedings under section 147 of the Act were initiated. Vide assessment order passed under section 143(3) read with section 147 of the Act, the Assessing Officer ("AO") made an addition of Rs. 15,65,241. In further appeal, the learned CIT(A) restricted the addition to 12.5% of the total non-genuine purchases. The Coordinate Bench of the Tribunal, in appeal by the assessee in quantum p....

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....owance to 12.5% of the bogus purchases. 5. In the meanwhile, penalty proceedings under section 271(1)(c) of the Act were initiated separately by the AO for the year under consideration in the second round of proceedings. After considering the submissions of the assessee, the AO vide order dated 27.06.2024 passed under section 271(1)(c) of the Act, levied a penalty of Rs. 8,46,419/- being 100% o....

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....estimates. 7. We find that the Hon'ble Rajasthan High Court in CIT v/s Krishi Tyre Retreading and Rubber Industries, reported in [2014] 360 ITR 580 (Raj.), held that where an addition is made purely on an estimate basis, no penalty under section 271(1)(c) of the Act is leviable. Similar view has been expressed by the Hon'ble Punjab & Haryana High Court in CIT v/s Sangrur Vanaspati Mills....