No Penalty on Estimated Bogus Purchases: ITAT Deletes U/s 271(1)(c) Levy

Perg Advertising Pvt. Ltd. Vs DCIT (ITAT Mumbai) The assessee faced penalty under Section 271(1)(c) based on additions arising from alleged bogus purchases, where only the profit element (12.5%) was estimated and added. The ITAT held that such additions are purely on estimate basis, without concrete evidence of concealment or furnishing inaccurate particulars. Relying on settled judicial precedents, it reiterated that penalty cannot be levied on estimated additions, especially when purchases are not fully disallowed but only profit is estimated. Accordingly, the Tribunal deleted the penalty fo...