ITAT Surat Deletes Section 271(1)(c) Penalty on Estimated Purchase Addition

Thakorbhai & Company Vs ITO (ITAT Surat) Income Tax Appellate Tribunal (ITAT) Surat has ruled in favor of the assessee, Thakorbhai & Company, in a case concerning the imposition of a penalty under Section 271(1)(c) of the Income Tax Act for Assessment Year 2009-10. The dispute arose after the Assessing Officer (AO) made an addition of ₹38.51 lakh by disallowing 50% of purchases amounting to ₹77.03 lakh, treating them as bogus. Subsequently, the AO levied a penalty of ₹2,11,310 under Section 271(1)(c) for alleged concealment of income. The assessee contested this penalty, arguing ...