No Penalty on Estimated Addition for Bogus Purchases: ITAT Mumbai

Dombivali Paper Mfg. Co. Pvt. Ltd Vs ACIT (ITAT Mumbai)

The Income Tax Appellate Tribunal (ITAT) Mumbai recently rendered a decision in the case of Dombivali Paper Mfg. Co. Pvt. Ltd vs. ACIT, addressing the imposition of a penalty under Section 271(1)(c) of the Income Tax Act, 1961. This analysis aims to provide insights into the facts, arguments, and the tribunal’s reasoning leading to the decision.

Background: The appellant, engaged in the manufacture of craft paper, filed its return of incom

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