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2021 (11) TMI 211 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Proof of concealment/furnishing of inaccurate particulars - employers contribution to ESI/PF disallowable u/s 43 B - HELD THAT:- Addition stood disclosed in the tax audit report, interest on TDS & income tax refund, and ESI /Income Tax penalty all stood duly disclosed by the assessee. It is just that while certain disallowances/additions, i.e. ESI & PF and Interest on refund & TDS and difference in interest receipts reflected in Form 26AS and that returned, were inadvertently missed to have been made by the assessee who surrendered the same when it was made aware during scrutiny assessment, the rest being minor penalty of ESI and interest on late payment of TDS, income tax and service tax penalty were contested as being compensatory and hence allowable but were subsequently offered for taxation. Considering the huge losses, the additions and disallowances inviting the levy of penalty amounting in all to ₹ 5,59,803/-, are too immaterial and coupled to it is the fact that a major portion of it relating to ESI/PF disallowed u/s 43B of the Act of ₹ 4,79,986/- had stood disclosed in the tax audit report as disallowable but was inadvertently left out while computing the income for the year. The same is clearly not liable to any penalty being squarely covered by the decision in the case of Price Waterhouse Coopers [2012 (9) TMI 775 - SUPREME COURT]The remaining additions/disallowances of ₹ 79,817/- are pathetically immaterial and can be safely said to have been bonafidely mistakenly not disallowed/added back to the income of the assessee as claimed by it. We hold that no penalty u/s 271(1)(c) of the Act was leviable on account of additions made as listed above in our order and the order of the Ld.CIT(A), therefore, upholding levy of penalty is set aside - Decided in favour of assessee.
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