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2017 (8) TMI 745 - AT - Income TaxLevy of penalty under Sec. 271(1)(c) - addition of interest income - Revised Computation of Income - Held that:- When no penalty had been imposed in the hands of the assessee in respect of similar ‘interest income’ which was offered for tax by the assessee by way of a ‘Revised Computation of Income’ in the course of the assessment proceedings in his case for A.Y. 2010-11, therefore, an inconsistent and whimsical approach on the part of the A.O, therein leading to levy of penalty under Sec. 271(1)(c) in respect of similar ‘interest income’ which too was offered for tax by the assessee by way of ‘Revised Computation of Income’, cannot be sustained in the eyes of law. We further find that the bonafides of the assessee that the aforesaid ‘interest income’ had inadvertently remained omitted to be reflected in his ‘Return of income’ for the year under consideration, viz. A.Y. 2011-12, further stands fortified from the very fact that the assessee had duly reflected the ‘interest income’ relatable to the said advances/deposits in his ‘Return of income’ for A.Y. 2012-13, which was e-filed on 30.08.2012. That as the aforesaid ‘Return of income’ for A.Y. 2012-13 was filed by the assessee before the issue of notice u/s 143(2) for A.Y. 2011-12 on 08.09.2012, therefore, we are of the considered view that it can fairly be concluded that such reflection of ‘interest income’ in the return of income for A.Y. 2012-13 clearly reflects the bonafide mistake of the assessee in failing to have reflected the ‘interest income’ during the year under consideration, viz. A.Y. 2011-12, which on coming to the notice of the assessee, was thus voluntarily offered for tax by the assessee. Thus we quash the penalty imposed by the A.O under Sec. 271(1)(c). -Decided in favour of assessee.
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