TMI Blog2019 (6) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance 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. - ITA no.1841/Mum./2018 - - - Dated:- 29-5-2019 - Shri Saktijit Dey, Jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee submitted that due to over sight, the amount was not added back to the total income in the computation of income. Thus, the Assessing Officer disallowed the amount of ₹ 1,62,563 under section 40(a)(ia) of the Act. On the basis of such disallowance, the Assessing Officer initiated proceedings for imposition of penalty under section 271(1)(c) of the Act alleging furnishing of inaccurate particulars of income and ultimately quashed the order on 27th September 2016, imposing penalty of ₹ 55,260, under section 271(1)(c) of the Act. 4. Though, the assessee challenged the penalty order before the first appellate authority, however, the penalty imposed was sustained by the learned Commissioner (Appeals). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We have considered rival submissions and perused the material on record. From the assessment order itself it is evident that the Assessing Officer came to know about the non deduction of tax at source on the payment of ₹ 1,62,563, 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 under section 40(a)(ia) of the Act 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. Moreover, since the assessee had furnished full particulars about the expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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