Section 271(1)(c) Penalty Invalid Where Income is Determined on Presumptive Basis: ITAT Mumbai

NMC Industries Private Limited Vs JCIT (ITAT Mumbai) The appeal concerns the penalty imposed under section 271(1)(c) of the Income-tax Act for the assessment year 2010–11. The assessee, engaged in trading iron and steel bars, had filed its return declaring income of ₹3,63,36,810. The return was selected for scrutiny, and assessment was completed under section 143(3). Based on information from the Maharashtra Sales Tax Department identifying certain dealers as hawala operators issuing accommodation bills, the Assessing Officer reopened the assessment under section 147, alleging that purchas...