The Tax Publishers2020 TaxPub(DT) 3420 (Mum-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

As regards addition made on estimate basis, no penalty could be levied under section 271(1)(c).

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Leviability - Addition made on estimation basis

AO made addition on estimated basis on purchases made by assessee from grey market and accordingly levied penalty under section 271(1)(c). Held: AO only estimated gross profit on alleged non-genuine purchases without there being any conclusive proof of concealment of income or furnishing inaccurate particulars of such income and, therefore, such being the case, no penalty could be levied under section 271(1)(c).

Relied:CIT v. Aero Traders Pvt. Ltd. [(2010) 322 ITR 316 (Del) : 2010 TaxPub(DT) 1381 (Del-HC)] Harigopal Singh v. CIT [(2002) 258 ITR 85 (P&H) : 2002 TaxPub(DT) 1625 (P&H-HC)] DCIT v. Manohar Manak, Alloys Pvt. Ltd in ITA No. 5586/MUM/2015 dated 16-1-2017 Deepak Gogri v. ITO in ITA. No. 1396/MUM/2017 dated 23-11-2017

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2011-12

IN THE ITAT, MUMBAI BENCH

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