Penalty U/s 271(1)(c) Upheld on Bogus Purchases – ITAT Confirms Concealment

Piyush Amritlal Mehta Vs ITO (ITAT Mumbai) The ITAT Mumbai upheld the levy of penalty under Section 271(1)(c), holding that the assessee had concealed income through bogus purchases, and failed to rebut findings of lower authorities. In this case, the AO had levied penalty of about ₹17.04 lakhs on account of additions arising from non-genuine (hawala) purchases, where only the profit element was brought to tax. The CIT(A) confirmed the penalty. The Tribunal observed  that: The assessee failed to produce documentary evidence to substantiate purchases, Additions were made due to bogus transa...