No Penalty on additions sustained on alleged Bogus Purchase for mere non-production of parties

Brief of the Case The ITAT Ahmedabad in the case of M/s Ruchi Developers vs. ITO, where Assessee has failed to produce creditor parties in respect of alleged Bogus Purchases while he submitted all other details and evidences and additions been made, It was  held that where explanation of the assessee has not been accepted by the Department, The levy of penalty is merely on disallowance of expenditure and not finding of concealment of any particulars or mala fide intention to reduce the taxable income. The addition made on this count automatically cannot justify the penalty levied u/s 271(1)(c...