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2017 (9) TMI 1979 - AT - Income TaxPenalty u/s 271(1) (c) - estimation of income on bogus purchases - assessee argued additions has been made on and estimate basis and that in case of estimation no penalties leviable - HELD THAT:- Perusal of assessment order reveals that the assessing officer, while passing the assessment order under section 143(3) rws 147, made the addition on the basis of estimation. The assessing officer made addition @ 25% of the alleged bogus purchases. The revenue has not disputed that additions were made merely on the basis of estimation. It is settled law that no penalties is leviable under section 271(1)(c) for ad hoc /estimated additions.Accordingly, we are of the opinion that this is not a fit case for levy of penalty. In the result the grounds of appeal raised by the assessee is allowed.
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