Bogus Purchase: No Penalty for Estimate-Based Additions

Advertisement Orient Fabritech Pvt. Ltd. Vs ITO (ITAT Mumbai) The case of Orient Fabritech Pvt. Ltd. vs. ITO (ITAT Mumbai) involves an appeal by the assessee against the imposition of a penalty under section 271(1)(c) of the Income Tax Act, 1961 (the Act) for the Assessment Year 2009-10. The dispute centers around the alleged bogus purchases made by the assessee, which were estimated at 12.5% of the total alleged bogus purchases. The appeal challenges the penalty imposed by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals) – National Faceless Appeal Cen...