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2020 (10) TMI 1149 - AT - Income TaxPenalty levied u/s. 271 (1)(c) - bogus purchases - tribunal has directed the AO to restrict the addition on account of bogus purchases estimating at 12.5% of bogus purchases as income of the assessee - HELD THAT:- As in own case [2020 (3) TMI 1258 - ITAT MUMBAI] A.O has made disallowance of bogus purchases but has accepted the sales in the books of accounts, and whereas as directed the AO to disallow 12.5% of Bogus purchases. Where the addition is sustained on the estimated basis, no penalty u/s 271(1)(c) can be levied on the estimated income. Accordingly, we, considering the facts and principles of natural justice set aside the order of the CIT(A) and direct the A.O to delete the penalty and allow the grounds of appeal of the assessee.
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