No Section 271(1)(c) Penalty on Estimated GP for Bogus Purchases

Om Sai Traders Vs ITO (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai has deleted the penalty imposed under Section 271(1)(c) on Om Sai Traders for Assessment Years 2010-11 and 2011-12. The penalty, amounting to ₹2,89,272 and ₹2,07,177 respectively, was levied on account of an estimated Gross Profit (GP) addition applied to alleged bogus purchases. The Assessing Officer (AO) had initially treated the entire purchases as bogus, leading to an addition of ₹74,89,235 for AY 2010-11 and ₹64,93,318 for AY 2011-12. However, in quantum proceedings, the Tribunal had restricted the add...