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2021 (9) TMI 1024 - AT - Income TaxPenalty u/s 271(c) - Estimation of income for purchases purchases - CIT-A deleted the addition - HELD THAT:- Undisputedly, based on certain information received from Sales-tax authorities, the assessing officer has treated certain purchases as non genuine. However, he has accepted that the assessee has effected the corresponding sales, meaning thereby, the goods might have been purchased from unverified sources - AO instead of disallowing the entire purchases had restricted the disallowance to the profit element embedded in such purchases by estimating at 12.5%. The doubt, if any, is with regard to the source of purchases. Inability of the assessee to prove the source of purchase could be due to various factors. However, that by itself, cannot lead to the conclusion that the assessee has furnished inaccurate particulars of income so as to visit him with penalty under section 271(c) of the Act. More so, when the additions have been made purely on estimate basis.- No infirmity in the decision of learned Commissioner (Appeals) in deleting the penalty imposed under section 271(1)(c) - Decided against revenue.
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