No Section 271(1)(c) Penalty on Estimated Bogus Purchases Additions: Bombay HC

PCIT Vs Colo Colour Pvt. Ltd (Bombay High Court) Bombay High Court dismissed the Revenue’s appeal against the Tribunal’s order deleting penalty levied u/s 271(1)(c) for AY 2011–12. The assessee, engaged in the photo studio & photographic material trade, had faced reassessment under Section 147/143(3), where additions were made on account of alleged bogus purchases & commission expenditure based on Sales Tax Department information. The Assessing Officer, while noting that purchases could not be fully doubted, estimated profit element at 12.5% & further added 1% towards commiss...