No penalty on addition based on estimated rate of profit applied on turnover

ITO Vs Pritesh Mafatlal Shah (ITAT Mumbai) Hon’ble Delhi High Court in the case of CIT Aero Traders Pvt. Ltd., [322 ITR 316] wherein the Hon’ble High Court affirmed the order of the Tribunal in holding that estimated rate of profit applied on the turnover of the assessee does not amount to concealment or furnishing inaccurate particulars. In the case on hand the Ld. CIT(A) as well as Coordinate Bench in assessee’s case, only estimated the Gross Profit on the alleged non-genuine purchases without there being any conclusive proof of concealment of income or furnishing inaccurate pa...