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2016 (6) TMI 209 - AT - Income TaxPenalty under section 271(1)(c) - difference between the reported and the assessed income - inadvertent mistake - exchange rate difference on repayment of Term loan capitalized to the cost of assets in terms of section 43A of the Act not added back to the total income - Held that:- Ostensibly, in all cases where there is a difference between the reported and the assessed income, penalty under section 271(1)(c) of the Act cannot be justified. As because there is a difference between the reported and the assessed income, it would not justify imposition of penalty under section 271(1)(c) of the Act. So far as the present controversy is concerned, it relates to an inadvertent error on the part of the assessee in not adding back a sum of ₹ 13,70,387/- representing exchange rate difference on repayment of Term loan capitalized to the cost of assets in terms of section 43A of the Act but the same was not added back to the total income, as it was already debited in the Profit & Loss Account. The circumstances explained by the assessee, which have not been doubted by the Revenue, clearly establish that it is a case of an inadvertent mistake and not a deliberate attempt to conceal the income or furnish inaccurate particulars of income within the meaning of section 271(1)(c) of the Act. The judgment of the Hon’ble Bombay High Court in the case of Bennett Coleman & Co. Ltd.(2013 (3) TMI 373 - BOMBAY HIGH COURT) clearly supports the stand of the appellant that an inadvertent mistake on the part of the assessee while filing the return of income cannot be construed as liable for penalty under section 271(1)(c) of the Act. In view of the aforesaid discussion, we hereby set-aside the order of the CIT(Appeals) and direct the Assessing Officer to delete the penalty imposed under section 271(1)(c) of the Act. - Decided in favour of assessee
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