The Tribunal held that the addition was made on the basis of the incriminating statement of third party recorded under section 132(4) without furnishing the same to the assessee. The assessee having chosen not to file any appeal against the addition in view of smallness of amount and in the wake of its claim of huge loss, in the return, levy of penalty under S. 271(1)(c) is not sustainable, more so, as the assessee had filed necessary documents to substantiate the genuineness of purchases. (AY. 2010-11)