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2022 (6) TMI 1298 - AT - Income TaxPenalty u/s 271(1)(c) - assessee debited to its Profit & loss account - Education cess on TDS, Income tax paid, Penalty on TDS and TDS paid - Scope of bonafide mistake - assessee admitted the proposed disallowances by submitting that due to inadvertent mistake, the add back could not be made and even the Auditor also did not alert the assessee on this point - HELD THAT:- It is clear from the nature of the amounts and the way of their depiction thereof in the Profit & loss account that the assessee inadvertently committed a mistake in not adding back the amount of income tax, etc paid by it in the computation of total income. On being pointed out, the assessee accepted the disallowance and paid due tax thereon. It is not a case where the assessee tried to mislead the Revenue by intentionally claiming higher amount of deduction. Rather it is a case of inadvertent mistake in the computation of income. Hon’ble Supreme Court in Price Waterhouse Coopers Pvt. Ltd.[2012 (9) TMI 775 - SUPREME COURT] has held that no penalty u/s.271(1)(c) can be imposed in respect of inadvertent and bona fide mistake committed by the assessee. The Hon’ble jurisdictional High Court in CIT Vs. Somany Evergreen Knits [2013 (4) TMI 154 - BOMBAY HIGH COURT]also deleted the penalty which occurred due to bona fide and inadvertent mistake of the Chartered Accountant while filing the return. Since the facts and circumstances of the instant case amply show that the excess claim of deduction was due to bona fide and unintentional mistake, respectfully following the precedents, we order to delete the penalty. Appeal of assessee allowed.
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