ITAT Mumbai: No Penalty on Estimated Addition – L.S. Diamonds Vs CIT

L.S. Diamonds Vs CIT (ITAT Mumbai) Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai addressed a case involving L.S. Diamonds and the Commissioner of Income Tax (CIT). The issue revolved around the penalty imposed under section 271(1)(c) of the Income Tax Act for alleged inaccurate particulars of income due to estimated additions. Analysis: In the assessment, the Assessing Officer made additions to the income of the assessee based on alleged bogus purchases. These additions were made on an estimated basis, and the CIT(A) partially confirmed the additions. Subsequently, penalties we...