No penalty leviable if finding of AO on bogus purchases was set aside

DCIT Vs Sri Anil J Kothari (ITAT Ahmedabad) AO has made addition on account of unverifiable purchases at Rs.2,70,40,363/- being entire purchases which were reduced to 0.25% of total disputed purchases. Thus, the addition was estimated @ 0.25% of transaction amount, which cannot therefore, be termed as conclusive proof of concealment of income or furnishing inaccurate particulars of income. The finding recorded in assessment order is not conclusive for imposition of penalty but it has only persuasive value. Therefore, the profit arrived at is only a guess work which could be estimated by applyi...