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 income for A.Y. 2011-12, declaring total income of Rs. 1,34,48,577. The case was reopened based on ...