Penalty u/s 271(1)(c) unsustainable in absence of concealment of income or furnishing of inaccurate particulars

ITO Vs Broadcasting Services (ITAT Mumbai) ITAT Mumbai held that estimated rate of profit applied on the alleged non-genuine purchases doesn’t amount to concealment of income or furnishing inaccurate particulars. Accordingly, penalty u/s 271(1)(c) of the Income Tax Act unsustainable. Facts- While completing reassessment, AO treated purchases of Rs. 36,38,274/- as non-genuine and accordingly estimated the profit element from non-genuine purchase at 17.8% and brought to tax an amount of Rs. 6,47,613/-. The assessee accepted the estimation of profit element from non-genuine purchases made by AO...