Bhupesh Sevantilal Shah Vs ITO (ITAT Mumbai)No Penalty on Estimated Additions – ITAT Mumbai Rules in Bogus Purchase Case- Estimated Profit Element Cannot Lead to Penalty – Revenue’s Case Fails- No Cogent Evidence, Only Estimates – Tribunal Protects Assessee from PenaltyAssessee had filed return declaring income of Rs. This ruling reiterates that penalty u/s 271(1)(c) cannot be sustained where additions are based on estimation of profit element in alleged bogus purchases without supporting evidence. 81,62,012/- after making addition on account of bogus purchases of Rs. CIT(A) reduced the addition by 5% thereby sustaining 7.5% of the alleged bogus purchases. The AO levied penalty on such confirmed alleged bogus purchases amounting to Rs.