Penalty on Estimated Bogus Purchases Unsustainable: ITAT Pune

Size Control Gauges And Tools Pvt. Ltd. Vs DCIT (ITAT Pune) Penalty on Estimated Bogus Purchases Unsustainable: ITAT Pune Deletes 271(1)(c) Penalty The Pune Bench of the ITAT deleted penalties levied under section 271(1)(c) for AYs 2007-08 to 2011-12 where additions on account of alleged bogus purchases were sustained only on an estimated profit element. Although the Assessing Officer had imposed fresh penalties after giving effect to an earlier ITAT order that merely re-computed the disallowance (restricting it to 10% of the alleged bogus purchases), the Tribunal held that such estimated addi...