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2021 (8) TMI 1191 - ITAT MUMBAIPenalty u/s.271(1)(c) - computation of income added back the provision for substandard asset for the purpose of sec 115JB - HELD THAT:- There is no case that the profit and loss account prepared is not as per law - provision for standard asset is duly reflected in the profit and loss account. It cannot be said that it was not a mistake of the assessee not to add back the same under section 115JB. Once having disclosed the provision for substandard asset which is a normal feature in the preparation of profit and loss account, it will certainly be a mistake not to add the same under the 115JB computation of income. CIT(A) has completely erred in observing that the provision for substandard asset was not disclosed in any of the enclosures of computation of income. CIT(A) has misled himself. Assessee’s claim that it was a genuine mistake and the assessee has suo moto revised the same during the assessment proceedings is cogent. The authorities below have not been able to cogently rebut the submission of the assessee - set aside the orders of the authorities below and delete the penalty - Appeal by the assessee stands allowed.
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