No penalty u/s 271(1)(c) can be imposed when income is estimated

ITO Vs Mohd Umar Timber Mart (ITAT Mumbai) ITAT Mumbai held that it is settled legal position that when income is estimated, then there can be no question of imposing penalty u/s 271(1)(c) of the Act. Facts- The assessee in dealer in timber and wooden items. For the A.Y. 2009-10, Assessee has filed the return of income on 18.09.2010, for the A.Y. 2010-11 the same was duly processed u/s 143(1). Subsequently, based on certain information received from sales tax department, Maharashtra, giving names and details of certain dealers, who were providing entries for bogus purchase bills, assessee’s ...