Bombay HC Deletes Penalty as Bogus Purchase Addition Was Based on Estimation

Advertisement PCIT Vs Elcon Pipe And Fittings Pvt. Ltd. (Bombay High Court) The Bombay High Court dismissed the Revenue’s appeal against the order of the Income Tax Appellate Tribunal (ITAT) deleting the penalty imposed under Section 271(1)(c) of the Income-tax Act for Assessment Year 2009-10. The case originated after the Revenue received information from the Maharashtra Sales Tax Department identifying certain entities allegedly engaged in issuing bogus purchase bills. Based on this information, a notice under Section 148 was issued to the assessee, and an assessment under Sect...