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| The Tax Publishers2020 TaxPub(DT) 4619 (Mum-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where CIT(A) estimated the profit of the total alleged bogus purchases, then penalty under section 271(1)(c) was not leviable because penalty would not be exigible merely because an addition is made on estimate basis.
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Penalty under section 271(1)(c) - Validity - Penalty whether justified when addition was made on estimated basis -
Issue was as regards validity of penalty imposed under section 271(1)(c), when addition was made on estimated basis by CIT(A). Held: CIT(A) estimated the profit @ 17.67% of the total alleged bogus purchases. Penalty under section 271(1)(c) was not leviable because penalty would not be exigible merely because an addition is made on estimate basis.
Followed: CIT v. Raj Bans Singh (2005) 276 ITR 351 (All) : 2005 TaxPub(DT) 555 (All-HC) and CIT v. Ajaib Singh & Co. (2002) 253 ITR 630 (P&H) : 2002 TaxPub(DT) 548 (P&H-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, MUMBAI BENCH
MAHAVIR SINGH, V.P. & N.K. PRADHAN, A.M.
Hiten Yogesh Thakkar v. ITO
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