2021 (2) TMI 544 - ITAT MUMBAI - Income Tax

Head Note / Extract:
Penalty u/s 271(1)(c) - Estimation of income - quantum additions made on account of bogus purchases - HELD THAT:- We find that the CIT(Appeals) has deleted the penalty on the basis of this fact when the profit was estimated then no penalty was leviable. CIT(A) has relied upon the Hon’ble Allahabad High Court in the case of Naresh Chand Agrwal [2013 (6) TMI 68 - ALLAHABAD HIGH COURT] and the decision in the case of DCIT Cir 4(2)(2) Vs. M/s. Manoharmanak Alloys Pvt. Ltd[2017 (1) TMI 1698 - ITAT MUMBAI], and the decision of Hon’ble ITAT Delhi Bench in the case of Shruti Fastners Ltd. Vs. DCIT [2017 (4) TMI 1059 - ITAT DELHI], and ITAT Mumbai in the case of Rakeshkumar M. Gupta Vs. ITO [2017 (2) TMI 1472 - ITAT MUMBAI ], Moreover, the Hon’ble Gujarat High Court in the case of National Textiles Vs. CIT [2000 (10) TMI 19 - GUJARAT HIGH COURT], has held that the penalty is not leviable when the profit has been estimated on estimation basis. - Decided in favour of assessee.