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2021 (7) TMI 7 - AT - Income TaxPenalty levied u/s. 271(1)(c) - Estimation of income on bogus purchases - .CIT(A) deleted the penalty since the disallowance was made by making estimation of Gross Profit on the purchases - HELD THAT:- It is a settled position of law that penalty cannot be levied when an adhoc estimation is made. Inboth these cases an adhoc estimation was made by the Assessing Officer restricting the profit element in the purchases @10% and the Ld.CIT(A) scaled down the percentage of profit element in such purchases to 5%. See SHRI DEEPAK POPATLAL GALA & OTHERS [2015 (6) TMI 944 - ITAT MUMBAI]. 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. Thus, we do not observe any infirmity in the orders passed by the Ld.CIT(A) in deleting the penalty u/s.271(1)(c) of the Act levied by the Assessing Officer for the Assessment Years under consideration - Decided in favour of assessee.
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