No Section 271(1)(c) penalty on estimated addition of alleged bogus purchases

Vijay Jewellers Vs Additional / Joint / Deputy / ACIT / ITO / National Faceless Assessment Centre (ITAT Mumbai) In the case of Vijay Jewellers Vs ACIT, the Income Tax Appellate Tribunal (ITAT) Mumbai dealt with penalties imposed under Section 271(1)(c) of the Income Tax Act for alleged bogus purchases. The original assessment had led to additions based on estimated percentages (5% and 8%) of supposed fake purchases. The total income was calculated after these additions, and the penalties were imposed for concealing income and providing inaccurate details. However, ITAT Mumbai found that since ...