No Penalty for Additions Based on Estimation Without Concrete Proof: ITAT Mumbai

Advertisement Dev Engineers Vs DCIT (ITAT Mumbai) Summary: In the case of Dev Engineers Vs DCIT, the Income Tax Appellate Tribunal (ITAT) Mumbai dealt with penalties levied under Sections 271(1)(c) and 271AAB of the Income Tax Act. Following a search operation, additions totaling ₹2.27 crore were made, including bogus purchases and labor expenses. The Assessing Officer imposed penalties for inaccurate income details and undisclosed income. On appeal, CIT(A) partially reduced the additions but upheld the penalties, citing intent to conceal income. However, ITAT ruled in favor of the assess...