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2016 (12) TMI 1010 - AT - Income TaxLevy of penalty u/s 271(1)(C) - fringe benefits arising out of depreciation on motor car - Held that:- Assessing Officer/CIT(Appeals) failed to prove that the explanation of the assessee that only by oversight and inadvertently the depreciation on motor car was not included in the value of fringe benefits. We see no reason other than an inadvertent mistake occurred in not including the depreciation on motor car in the value of fringe benefits because the assessee itself returned the fringe benefits in respect of other expenses like repairs, vehicle hire charges etc. The explanation of the assessee that since this is the first year of the provisions of fringe benefits coming into statute this mistake had happened and there is no such mistake had happened in any of the subsequent assessment years is a bonafide explanation and this is not proved to be false by the revenue authorities. In view of what is stated above we are of the opinion that there is neither concealment nor furnishing of inaccurate particulars by the assessee in not including the depreciation on motor car in the value of fringe benefits while filing FBT return and it had happened only on an inadvertent mistake by oversight. Hence no penalty is leviable u/s 271(1)(c) of the Act. - Decided in favour of assessee
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