Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 502 - AT - Income TaxPenalty u/s 271(1)(c) - Held that:- During the assessment proceedings, the assessee did not give any justification, rather, revised the return and reduced its claim of loss. Again during the penalty proceedings, the assessee did not give any explanation as to how mistake was occurred. Before the ld.CIT(A), it was contented by the assessee that a bona fide mistake was committed by the staff while preparing the statement of total income. According to the assessee, the assessee had no intention to conceal any particulars of income or avoid its tax liability, because, the assessee company never wants to claim prior period expenditure and deferred tax liability as revenue expenditure, because they have not been debited to expenditure account. The onus upon the assessee was to demonstrate as to how mistake has occurred. How such a mistake could be alleged as a bona fide mistake ? The only explanation on that score is that the company is operating at a very small level. Its total turnover was ₹ 19 lakhs. Apart from that the assessee did not bother to go to AO to give any explanation. How the AO could verify that explanation given by the assessee was false or not ? Because no explanation was given. Similarly, the assessee failed to give any material which can substantiate its explanation as to how the mistake has happened. - Decided against assessee.
|