Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 660 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance u/s 40(a)(ia) - as per AO assessee should have disallowed the corresponding expenditure and not the TDS amount - bonafide mistake or not? - HELD THAT:- In the statutory audit report itself, the auditor has furnished the details of expenditure in respect of which tax was not deducted at source. It is also evident that the assessee has voluntarily made some disallowances under section 40(a)(ia) - mistake committed by the assessee is, instead of disallowing expenditure incurred which was subject to TDS, it has computed the TDS amount of such expenditure and has disallowed under section 40(a)(ia) - a bonafide mistake on the part of the assessee, as submitted by the learned Authorised Representative. AO has not doubted either the genuineness of the expenditure claimed or the payments made. The only reason for which the expenditure was disallowed is due to non–deduction of tax at source. In other words, it is statutory disallowance. That being the case, the assessee cannot be accused of submitting inaccurate particulars of income or concealing its income. Accordingly, we delete the penalty imposed under section 271(1)(c) - Decided in favour of assessee.
|