Section 271(1)(c) cannot be imposed on ad hoc estimation of bogus purchases

Advertisement PCIT Vs Colo Colour Pvt. Ltd. (Bombay High Court) Bombay High Court in PCIT vs Colo Colour Pvt. Ltd. examined the validity of penalty levied under Section 271(1)(c) of the Income Tax Act, 1961, in the context of alleged bogus purchases claimed by the assessee. The appeal arose from an order dated 31 July 2020 by the Income Tax Appellate Tribunal (Mumbai Bench), which upheld the decision of the Commissioner of Income Tax (Appeals) to delete the penalty imposed by the Assessing Officer (AO) for Assessment Year 2011-12. The assessee operated a photo studio and traded in photograp...