TMI Blog2017 (1) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... not a small amount that could be ignored by a person while filing the return. It is not the case that return was filed in the first month of the subsequent financial year and that assessee had not received the statement of interest income from the bank. Return of income is not a simple piece of paper. The assessees are supposed to not only disclose their income but also has to verify that entries made in it are correct The explanation filed by the assessee about not disclosing interest income in the return of income was not bona fide.So,confirming the order of the FAA,we decide the effective ground of appeal against the assessee. - I.T.A. /3337/Mum/2015 - - - Dated:- 6-1-2017 - Sh.Rajendra,Accountant Member and Amarjit Singh,Judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eep track of the financial affairs, that this led to oversight of not declaring the interest income in the return, that he had suo motu declared the interest income, that there was no independent finding on the part of the AO in that regard, that no specific query was raised by the AO about interest income, that the notice issued by the AO were general in nature. He placed reliance on the cases of Reliance Petro Products and Pricewaterhouse Coopers. However, the AO did not accept the contention of the assessee and stated that he had filed the belated return on 8.4.2011 in which the saving bank interest was not disclosed, that the amount of interest not disclosed was substantial which could have been easily overlooked by any assessee, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with cancer in February, 2009 and passed away in August, 2010, that being a pilot over international routes the assessee would often be out of India, that he had to rush to Bangalore to take care of his mother, he was under severe stress, that a belated return was filed in the month of April, 2011, that this was the first and only time the assessee had failed to make a complete clear declaration of the income,that the assessee on his own self had declared the interest income, that mere inclusion of certain deduction could not result in imposition of penalty, that the assessee was not living in Mumbai for longer periods, that he did not receive any possible computation from the bank regarding saving account, that the lack of information re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also failed in his obligation to disclose all the facts material to the competition of income on his return,that the AO had rightly levied a penalty u/s.271(1)(c). 4. During the course of hearing before us,the Authorised Representative(AR)argued that the assessee had filed a belated return of income on 08.04.2011,that the AO issued notice on 13.08. 2012,that mother of assessee was suffering from cancer and because of that he could not pay attention towards income tax matters,that no specific query was raised by the AO in his notice about saving bank interest,that the assessee had no intention of concealing the particulars of income of furnishing inaccurate particulars,that it was a bonafide mistake.He relied upon the matter of Heranb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of law. It is also be remembered that penalty under the Act is to compensate the revenue loss to the exchequer. Only a few of the returns, filed by the assessee is, are selected for scrutiny. It was only after the notice issued by the AO for scrutinising the return the assessee admitted to have received the interest income on savings account. Had he paid the taxes after filing the return and before the receipt of notice from the AO it could have been presumed that it was a bona fides and inadvertent mistake on part of the assessee.We would like to reproduce the relevant portion of the case of Zoom Communication (supra) and same reads as under: 19. It is true that mere submitting a claim which is incorrect in law would no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ims of this nature, actuated by a mala fide intention to evade tax otherwise payable by them would get away without paying the tax legally payable by them, if their cases are not picked up for scrutiny. This would take away the deterrent effect, which these penalty provisions in the Act have. We are of the opinion that the assessee had failed in his obligation to disclose all facts material to computing of his income for the year under consideration.As far as the matter of Heranba Industries Ltd.is concerned,it is sufficient to say that the case does not deal with explanation 1 to section 271 of the Act.In the present case,issue before us is to decide the matter keeping in view the provisions of explanation and to deliberate upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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