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2019 (6) TMI 92 - ITAT MUMBAIPenalty u/s 271(1)(c) - non deduction of tds - disallowance u/s 40(a)(ia) - bona fide mistake - furnishing inaccurate particulars of income - HELD THAT:- From the assessment order itself it is evident that the AO came to know about the non–deduction of tax at source on the payment from the tax audit report. The explanation of the assessee for non–deduction of tax at source is, due to oversight the assessee could not add back the amount disallowed u/s 40(a)(ia) in the computation of income. In our view, the aforesaid explanation of the assessee appears to be plausible considering the fact that disallowance of the aforesaid amount was suggested by the tax auditor in the audit report. Since the assessee had furnished full particulars about the expenditure incurred including the fact of non–deduction of tax at source in the tax audit report itself, it cannot be accused of furnishing inaccurate particulars of income. Therefore, contention of the learned Authorised Representative that failure to disallow the amount u/s 40(a)(ia) was due to a bona fide mistake is acceptable. Therefore, by applying the ratio laid down in Price waterhouse Coopers Pvt. Ltd. [2012 (9) TMI 775 - SUPREME COURT] we delete the penalty imposed - Decided in favour of assessee.
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