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2021 (3) TMI 659 - AT - Income TaxPenalty levied u/s. 271(1)(c) - Estimation of income on bogus purchases - HELD THAT:- It is a settled position of law that penalty cannot be levied when an ad hoc estimation is made. In this case an ad hoc estimation was made by the Assessing Officer restricting the profit element in the purchases @ 12.5%. Assessing Officer has only estimated the Gross Profit on the alleged non-genuine purchases without there being any conclusive proof of concealment of income or furnishing inaccurate particulars of such income. Ld. CIT(A) following various judicial pronouncements including the decision of Hon'ble Punjab & Haryana High Court in the case of Harigopal Singh v. CIT [2002 (8) TMI 65 - PUNJAB AND HARYANA HIGH COURT] deleted the penalty levied by the Assessing Officer. Thus, we do not observe any infirmity in the order passed by the Ld. CIT(A) in deleting the penalty u/s. 271(1)(c) - Decided in favour of assessee.
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