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2018 (5) TMI 236 - ITAT DELHIPenalty u/s 271(1)(c) - non allowability of expenses - non voluntary deceleration - Held that:- The three items in respect of which the addition is made, namely, loss on sale of fixed assets, fixed assets written off and provisions for doubtful debts do not fall under Chapter VIA of the Act and it leads no amount of support to the contention of the assessee that no query was raised for all the items. It, therefore, stands established that the assessee company had been suffering persistent losses and it is not an attempt to reduce the profit or tax. Though the notice u/s 143(2) and 142(1) was issued, in so far as the declaration of non allowability of these expenditures are concerned, such items were not covered under the query and to that extent, a revised computation filed by the assessee is voluntary. Undoubtedly, the assesseee is incurring persistent losses and there is considerable reduction in the manpower. Further, the tax audit report vide Clause 17(a) thereof says that the auditors’ reported the expenses of capital nature as ‘nil’. Mere issuance of notice u/s 143(2) does not ipso facto make the declaration of the assessee as non voluntary. We are convinced to believe that the mistake in this matter is the result of the assessee but does not amount to the concealment or furnishing of inaccurate particulars thereof. With this view of the mater, we hold that the penalty u/s 271(1)(c) cannot be sustained. - Decided in favour of assessee
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