Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 1940 - ITAT MUMBAIPenalty levied u/s 271(1)(c) - Assessee had filed a belated return of income showing a loss which is not eligible to be carried forward, and was not claimed in any subsequent years - HELD THAT:- On a careful consideration of the facts it appears that there is no intention on the part of the Assessee to conceal the income or furnish inaccurate particulars of income. The return of loss filed belatedly is not useful to the Assessee since the loss cannot be carried forward and it cannot be set off against the income in subsequent years as the return was filed belatedly. Therefore the Assessee has to forgo whatever loss is shown in the return of income. It appears that the CFO was entrusted with the filing of return and he made a mistake in not properly uploading the return by filling up the return with the disallowances which were already reported by the auditors in the tax audit report. CFO had undoubtedly made an error in filing electronically by uploading incorrect particulars. Therefore for the fault of the professional, the Assessee cannot be penalized. There is no intention of furnishing of any inaccurate particulars or concealment of income as the facts undoubtedly suggest in this case. Hon’ble Supreme Court in the case of Price Waterhouse Coopers Pvt. Ltd. [2012 (9) TMI 775 - SUPREME COURT] considered a situation where the Assessee by mistake claimed deduction in respect of provision towards payment of gratuity in its return of income even though tax audit report indicated that such provision was not allowable. Hon’ble Madras High Court in the case of CIT Vs. Balaji Distelleries Ltd [2012 (10) TMI 514 - MADRAS HIGH COURT] following the decision of the Hon’ble Supreme Court in the case of Price Waterhouse Coopers pvt. Ltd,[2012 (9) TMI 775 - SUPREME COURT] held that the absence of due care does not mean that the Assessee was guilty of furnishing inaccurate particulars to conceal his income. We hold that there is no concealment of income or furnishing of inaccurate particulars of income by the Assessee, but it is only a mistake in not adding back the expenses disallowable in the computation of income while uploading the return of income in the given facts and circumstances of the Assessee’s case. Thus, we direct the AO to delete the penalty levied u/s 271(1)(c) of the Act. Appeal of assessee allowed.
|