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2022 (2) TMI 1343 - AT - Income TaxPenalty proceedings u/s 271(1)(c) - Estimation of income - bogus purchases - HELD THAT:- We are of the opinion that when the addition is on estimated basis, penalty u/s 271(1)(c) of the Act cannot be levied on such adhoc estimated income. Disallowance of purchases on ad-hoc basis does not tantamount to furnishing inaccurate particulars of income under the provisions of Section 271(1) (c) of the Act. AO has not doubted the sales and made disallowance of bogus purchases and we rely on the ratio of the Honorable Jurisdictional High Court in the case of M/s Nikunj Eximp Enterprises [2014 (7) TMI 559 - BOMBAY HIGH COURT] Further the assessing officer made an addition based on the information received from Sales tax department Maharashtra since the said information could not conclusively be proved. DR could not controvert the findings of the CIT(A) with any new cogent evidences or information to take different view - we are not inclined to interfere with the order of the CIT(A) and upheld the same and dismiss the grounds of appeal of the revenue.
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