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2016 (12) TMI 1143 - ITAT MUMBAIPenalty u/s 271(1)(c) - income offered to tax during the quantum assessment - Held that:- The due taxes along with applicable interest were paid to the Revenue and assessment order in quantum was accepted by the assessee and no appeal was filed by the assessee before learned CIT(A) against quantum assessment order. On being asked by the authorities below, the assessee has submitted that it is inadvertent mistake/ommision and the assessee was under a bonafide belief that tax having deducted at source , and hence there was no need to show the same in the return of income filed with the Revenue. In our considered view based on peculiar facts of the case, the assessee has committed the mistake inadvertently for which explanation has been given by the assessee before the authorities below which is a bonafide explanation. The assessee filed revised computation of income before the AO including the above income during the assessment proceedings and claimed the tax deducted at source on these two income and paid the differential due taxes to the Revenue along with applicable interest. The assessee has come forward with bonafide explanation and therefore the penalty u/s 271(1)(c) of the Act levied by the A.O. on the assessee is not justified and is hereby ordered to be deleted as the case is covered by explanation 1 to Section 271(1)(c) of the Act. - Decided in favour of assessee
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