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2021 (5) TMI 749 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Estimation of income on bogus purchases - hawala parties u/s 69C - CIT(A) reduced the addition and restricted the same to the profit element of 15% of the alleged bogus purchases - HELD THAT:- As the sales has not doubted, he has only estimated the profit and on estimation of profit, the penalty cannot be levied. Even otherwise, the assessee has produced the complete invoices of purchases, payment was made by account payee cheque and further, the stock tally was also produced before the AO during the assessment proceedings. Once, all the documentary evidences were produced before the AO and sales are no doubted, it is doubtful, whether the purchases are bogus or not. Once, there is doubt, the penalty cannot be levied under section 271(1)(c) of the Act for furnishing of inaccurate particulars of income because, the assessee has not furnished any inaccurate particulars of income in this case. Hence, we are of the view that CIT(A) has rightly deleted the penalty and we confirm the same. - Decided against revenue.
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