No Penalty on Estimated Additions for Bogus Purchase: ITAT Mumbai

Bhupesh Sevantilal Shah Vs ITO (ITAT Mumbai) No Penalty on Estimated Additions – ITAT Mumbai Rules in Bogus Purchase Case- Estimated Profit Element Cannot Lead to Penalty – Revenue’s Case Fails- No Cogent Evidence, Only Estimates – Tribunal Protects Assessee from Penalty Assessee had filed return declaring income of Rs. 75.04 lakh which was assessed at Rs. 81.62 lakh after making addition of Rs. 5.29 lakh, being 12.5% of purchases treated as bogus from Shree Ram Steel. In appeal, CIT(A) reduced the disallowance to 7.5%, thereby sustaining addition of Rs. 3.17 lakh.  AO thereafter levi...