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2022 (8) TMI 1126 - AT - Income TaxPenalty u/s 271(1)(c) - addition made on account of loss on sale of assets by treating the assessee guilty of having furnished inaccurate particulars of its income - HELD THAT:- Submission made by the assessee in writing during the course of assessment proceedings itself as well as the further details already furnished by the assessee along with its return of income giving full and true details of the loss as well as its capital nature, we find merit in the contention for the assessee that the mistake in not adding back the loss on sale of fixed assets in computation of income was a bona fide mistake inadvertently committed by the assessee. In the case of Price Waterhouse Coopers Pvt Ltd [2012 (9) TMI 775 - SUPREME COURT] relied upon by the learned Counsel for the assessee, the Hon’ble Supreme Court held that even if the assessee was a reputed firm and had great expertise available with it, it was possible that it could make a “silly” mistake. In this regard, the Hon’ble Supreme Court took note of the fact that the Tax Audit Report filed by the assessee along with return of income unequivocally stated that the provision for payment was not allowable under Section 40A(7) of the Act and held that the contents of the Tax Audit Report suggested that there was no question of the assessee concealing its income or furnishing any inaccurate particulars of its income. Hon’ble Apex Court held that it was through a bona fide and inadvertent mistake, the assessee while submitting its return, failed to add the provision for gratuity to its total income. It was held that the imposition of penalty on the assessee, therefore, was not justifiable. The decision of the Hon’ble Supreme Court in the case of Price Waterhouse Coopers Pvt Ltd (supra) is squarely applicable in the facts of the present case as discussed above and respectfully following the same, we cancel the penalty imposed by the Assessing Officer under Section 271(1)(c) - Decided in favour of assessee allowed.
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