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2021 (2) TMI 1075 - AT - Income TaxLevy of penalty u/s 271(1)(c) - undisclosed salary income - omission of salary from income declared in the ROI - assessment proceedings u/s 153A - HELD THAT:- As during the course of assessment proceedings u/s 153A when the assessee prepared her statement of affairs it came to her notice that salary from M/s Bhatia Corporation Pvt. Ltd. which was credited in her account but not actually received was left to be included in the income by mistake. Accordingly, she filed revised computation of total income and offered the same for taxation. Thus, the omission of salary from income declared in the ROI filed u/s 153A is a bonafide mistake. On such bonafide mistake no penalty is leviable. The Hon'ble Supreme Court in case of Price Waterhouse Coopers (P.) Ltd. [2012 (9) TMI 775 - SUPREME COURT] wherein, in this case the assessee firm filed its return of income along with tax audit report. In its tax audit report, it was indicated that provision towards payment of gratuity was not allowable but it failed to add provision for gratuity to its total income. It was held that it was a bona fide and inadvertent error. The same can only be described as a human error which we all are prone to make. The assessee could not be held guilty of either furnishing inaccurate particulars or attempting to conceal its income. Therefore, imposition of penalty was unjustified. Salary was credited in the account of Yash Bhatia but was not actually received by him and therefore, it was left to be included in the income by mistake but when such mistake was noticed while preparing the statement of affair, the same was included in the income. Hence, for this reason it cannot be inferred that the assessee has intentionally not declared the salary income in the return of income. - Decided in favour of assessee.
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