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2018 (11) TMI 944 - ITAT MUMBAIPenalty levied u/s. 271(l)(c) - additions towards donation paid and STT paid - Held that:- As admitted fact that the assessee has filed revised statement of total income rectifying the said mistakes before completion of assessment proceedings. The reason given by the assessee for not disallowing those two items in the statement of total income is that there is an inadvertent error while filing return of income, which resulted in omission of those two items in the statement of total income. The said mistakes is only a human error which cannot be considered as deliberate attempt made to evade payment of taxes. When we examine the claim of the assessee in the light of the decision of Hon’ble Apex Court in the case of Price Waterhouse Coopers Pvt Ltd vs CIT, Kolkatta [2012 (9) TMI 775 - SUPREME COURT] we find that the facts of the assessee’s case are identical to the facts of the case while deleting penalty levied u/s 271(1)(c). In the said case, although the tax auditor quantified the disallowance of certain amount, the assessee failed to add back in the statement of total income. Under those facts, this cannot be considered as wilful attempt made to evade payment of taxes and at best, it could be termed as a human error which we are all prone to make. In this case, on perusal of facts, we find that although the assessee has disclosed all facts in respect of those two items of expenses, but failed to add back in the statement of total income, while filing return of income. The said mistake has been rectified immediately after noticing during the course of assessment proceedings by filing revised statement of total income. Under these facts and circumstances, the AO was incorrect in coming to the conclusion that the assessee has furnished inaccurate particulars of income in respect of donation paid & STT which warrants levy of penalty u/s 271(1)(c). - Decided against revenue.
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