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2016 (3) TMI 1474 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance being 10% of miscellaneous expenses, repair & maintenance etc. being unverifiable in nature and disallowance being loss on sale of asset which was debited to profit & loss account - bonafide mistake - HELD THAT:- Assessee as brought to the knowledge of the AO that the loss on sale of fixed asset was reflected in Schedule 18 of the audited accounts. We also note that while computing the depreciation under the Act, the gross sale consideration was reduced and the depreciation has been claimed at the reduced WDV. However, due to clerical mistake, the said amount was omitted in the computation. We find that in the copy of the Income-tax computation, the said disallowance had been mentioned but inadvertently the amount was omitted. We further note that in the balance sheet at col. No.18 of Other Expenses was shown as Loss on sale of fixed assets however, in the computation in the head ‘Loss on sale / discard of assets, the amount was not reflected. We also find that even during the course of assessment proceedings, all the information relating to the sale of asset had been furnished and the bonafide mistake that was made was accepted and the said amount was offered for taxation. We note that it is also not a case wherein the said amount was reflected under wrong head or concealed but the same was duly reflected in the audited accounts. We find that there is no deliberate attempt on the part of the assessee either to conceal income or to file inaccurate particulars of income. The assessee at the time of assessment proceedings has given all the details before the completion of the assessment proceedings. His explanation given to the AO has not been found to be false. We also find support from the decision of Price Waterhouse Coopers (P) Ltd.[2012 (9) TMI 775 - SUPREME COURT] held that the claim of the assessee could not be regarded either as “false” or not “bonafide” so as to conclude that assessee has furnished inaccurate particulars of income. Therefore, we set aside the orders of the authorities below and allow the appeal of the assessee. Assessee appeal allowed.
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