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2015 (6) TMI 1214 - ITAT, MUMBAIPenalty u/s 271(1)(c) - estimation of income - bogus purchases - HELD THAT:- There is merit in the contentions of the assessee. Admittedly, the AO has disallowed 20% of purchases only on presumptions without establishing fully that the assessee has made purchases from grey market. Even, if it is assumed for a moment that the assessee might have purchased goods from grey market, it was not established that the amount of purchases was less than that recorded in the books of account. Under these set of facts, it has to be held that the impugned addition has been made only on estimated basis that too on presumptions only. Hence, by following the decision rendered by the Tribunal in the assessee’s sister concern’s case [2015 (1) TMI 521 - ITAT MUMBAI] we hold that the impugned penalty is liable to deleted. Accordingly, we set aside the order of Ld CIT(A) and direct the AO to delete the penalty levied u/s 271(1)(c) of the Act. Appeal filed by the assessee is allowed.
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