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2017 (6) TMI 450 - AT - Income TaxPenalty u/s 271(l)(c) - short disclosure of interest on Income tax refund - Held that:- Admittedly there is a mistake committed by the assessee in not adding interest on the refund to his sources of income. There is no disputing the fact that the tax payer duly and diligently must necessarily in its return of income disclose all avenues of his income. The assessee in its defence has consistently maintained that the mistake has occurred as the information in regard to the said interest was not available in the public domain namely 26AS form of the assessee firm downloaded from the system and lack of any other intimation also available to the assessee from the Income Tax Department. These facts are not rebutted by the Revenue as CIT(A) has confirmed the penalty holding that it was the duty of the assessee to check and recheck the avenues of his income. The fact that it was the duty of the tax payer to follow due diligence cannot be over emphasized. Assessee is not a habitual defaulter and as per the assessment order, is shown to be “trading in wood”. There is nothing on record to show that it was an act of concealment nor is there any fact on record that there was a deliberate filing of inaccurate particulars of income. No doubt the assessee is expected to show due diligence and is mandatorily required to disclose all avenues of income before filing of his return. The mistake in the peculiar facts as considered in the decision of Apex Court in the case of Price Waterhouse Coopers (P.) Ltd. (2012 (9) TMI 775 - SUPREME COURT) being a bonafide or inadvertent mistake cannot be the basis for levying or upholding the penalty - Appeal of the assessee is allowed.
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