The Assessing Officer levied penalty under section 271(1)(c ) of the Act , in respect of alleged bogus purchases which was estimated at 12. 5%  by the Income Tax Appellate  Tribunal . On appeal the CIT (A) passed an ex parte order dismissing the appeal . On appeal against the ex prate order  , the Tribunal held that   normally, when the order of the First Appellate court is an ex parte order, wherein the assessee is not found to be at fault, Tribunal would be inclined to remand the matter back to the First Appellate court. However, when the necessary facts and circumstances and material on the basis of which, the issue in the appeal has  to be decided, are already on record, this Tribunal would be slow in directing such remand which may ultimately lead to multiplicity of proceedings. In the present case, the Tribunal  found  that the circumstances which are relevant for the purpose of deciding the issue involved are matters of record and, accordingly the matter is decided on merit . Tribunal following the ratio in  ITO v .Krishi Tyre Retreading & Rubber Industries (2014)   360 ITR 580 ( Raj ) ( HC)  CIT v.  Whitelene Chemicals  (2014) 360 ITR 385 ( Guj)( HC) , wherein the Courts have held  that when the income is estimated  levy of penalty is not justified . Accordingly the Tribunal  deleted the penalty .(  ITA NO. 2734/MUM/2023  dt . 6-12 -2023 ) ( AY. 2011 -12 )