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2015 (2) TMI 1300 - AT - Income TaxPenalty u/s. 271(1)(c) - assessee not deposited in EPF account after deducting the same from the employees - Held that:- We find that the fact regarding nonpayment of such dues to the Government account were obtained by A.O. from the documents accompanying income tax return only and A.O. had not detected any concealed income of the assessee. Full particulars regarding statutory payment to be made were disclosed in the return of income therefore, we hold that assessee had not concealed particulars of income and had not furnished inaccurate particulars of income. Mere wrong claim made by assessee cannot amount to concealment of income. In the case law of Price Waterhouse Coopers[2012 (9) TMI 775 - SUPREME COURT] the assessee had not added back to its computation of income the quantity as per the provisions of section 40A(7) of the Act. However, Hon'ble Supreme Court deleted the penalty holding that mistake was due to human error. In the present case, we observe that not adding back to the income of unallowable expenses, was due to a bona fide mistake which is strengthened from the fact that assessee had declared a loss of ₹ 153.35 lacs and even if the amount of ₹ 21.54 lacs was suo moto added back by assessee, still the income figure would have remained in negative. Therefore, it cannot be said that intention of assessee was to evade taxes by claiming wrong deductions. We hold that penalty was not imposable and therefore we delete it. - Decided in favour of assessee.
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