Bogus Purchase: No Penalty if Addition was on Estimated Basis

V. K. Ispat & Alloys Vs ITO (ITAT Mumbai) It is evident that addition made in the case of assessee pertains to addition made on bogus purchase on estimated basis. It is also pertinent to point out that the A.O. has arrived at the percentage of the gross profit based on the average gross profit earned by the assessee for A.Ys. 2008-09, 2009-10 and 2010- We would like to place our reliance in the decision of the co-ordinate bench in ITA No.5384/Mum/2019 in the case of ACIT vs. M/s. Fancy Diamonds India Pvt. Ltd. vide order dated 17.06.2022, which has held that in case where the addition is m...