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TMI Blog2022 (8) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 2016-17 and 2017-18 respectively. The Grounds of appeal raised by the assessee in both the appeals are as under:- ITA No. 9/JP/2022 - A.Y. 2016-17 ''1. On the faclts and in the circumstances of the case and in law, the ld. CIT(A) has grossly erred in confirming the penawlty of Rs.71,350/- of the Income Tax Act arbitrarily. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has grossly erred in confirming the penalty of Rs.71,350/- by brushing aside the fact that though penalty proceedings were initiated for furnishing inaccurate particulars of income, eventuality penalty was imposed for underreporting of income by suppressing. Appellant prays the provision of under reporting as embe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the imposition of penalty @ 200% of tax sought to be evaded which is excessive more particularly when assessee suo moto rectified the return of income as soon as mistake was brought to his notice in the return of income filed in response to notice u/s 148. Appellant prays that the most, penalty deserves to be restricted to100% of tax sought to be evaded.'' ITA No. 10/JP/2022 - A.Y. 2017-18 1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has grossly erred in confirming the penalty of Rs.3,16,688/- u/s 270A of the Income Tax Act arbitrarily. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has grossly erred in confirming the penalty by ignoring the settled position that p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derives income mainly from salary and he was employed with M/s Hindustan Copper Ltd., Khetri from where he received salary. The assessee provided all the documents for filing of the return of income to his counsel to file return declaring salary income at Rs. 4,09,935/- and total income of Rs. 2,59,940/- and refund of Rs. 35,680/- was claimed for AY 2016 17. Later on, assessment proceedings were initiated by issue of notice u/s 148 r.w.s. 147 of the Act. On receiving such notice, the assessee consulted another counsel for preparing return of income who informed the assessee that there were certain mistakes in the return filed u/s 139. Accordingly, while furnishing return of income in response to notice u/s 148, total income was correctly c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has held that though the assessee is reputed firm and has great experience available with it but not withstanding this, it is possible that even assessee could make silly mistakes. It appears that through a bonafide and inadvertent error the assessee failed to add the provision for gratuity to its total income. This can only be described as a human error and the calibre and expertise of the assessee has nothing to do with the inadvertent error. The Hon'ble Court further went to observe that the assessee should have been careful cannot be doubted but absence of due care, in a case such as the present, does not mean that the assessee is guilty of either furnishing inaccurate particulars of income or attempting to conceal its income. The H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted the return income so now filed and no additions were made while computing the income in the assessment order passed u/s 143(3) r.w.s. 147. Considering that assessee is salaried person, the argument of ld. AR that assessee is not well versed in taxation laws, cannot be brushed aside. Considering the judgment of Hon'ble Apex Court in the case of M/s Price Water House Coopers Pvt. Ltd., so cited by the ld. AR as above, and judgment of Hon'ble Rajasthan High Court in the case of J.P. Sharma & Sons Vs. CIT reported in 151 ITR 333 (so cited by ld. AR), we are of the opinion that it is a case where benefit of doubt is to be given to the assessee that it was an inadvertent and bonafide error on the part of assessee without knowing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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