Section 271(1)(c) Penalty not leviable on estimated bogus-purchase disallowance: ITAT Mumbai

DCIT Vs Relcon Infraprojects Limited (ITAT Mumbai) Penalty not leviable on estimated bogus-purchase disallowance – Revenue appeals dismissed The Mumbai ITAT dismissed all seven appeals filed by the Revenue for AYs 2014-15 to 2020-21, upholding deletion of penalties levied under sections 271(1)(c) (for AYs 2014-15 to 2016-17) and 270A (for AYs 2017-18 to 2020-21). In the quantum proceedings arising from a search u/s 132, additions for alleged bogus purchases were ultimately restricted to 2% on an estimated basis, due to lack of evidence quantifying the extent of inflation. Relying on settled ...