9911796707
TMI Blog2016 (3) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... any is engaged in the business of construction of residential flats. It has construction contracts with DDA and Group Housing Societies. During the year under consideration, the assessee declared taxable income of Rs.62,88,941/- on a turnover of Rs.34,70,27,097/-. The assessee was maintaining its regular books of accounts which were audited both under the Companies Act, 1956 and under section 44AB of the Act. The return of Income was selected for scrutiny u/s 143(2) of the Act and all the details along with audited accounts , tax audit reports as called for were duly furnished. The assessment was made under section 143(3) at Rs.70,63,560/- vide order dated 30.08.2011 and the AO made the disallowance of Rs.1,95,240/- being 10% of miscellaneo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not convinced and levied a penalty at the minimum rate of 100% which comes to Rs.1,95,017/-. 4. Aggrieved by the said order of the AO, the assessee preferred an appeal before the ld. CIT (A) who has upheld the order of the AO. 5. Aggrieved by the said decision of the CIT (A), the assessee is before us. 6. Ld. AR for the assessee, while reiterating the submissions made before the lower authorities, submitted that one of the divisions of the assessee company, RMC Ghaziabad, had discontinued its business during financial year 2007-08. He submitted that the building was dismantled and disposed off during the year under consideration and sold off. He submitted that the sale consideration has been reduced from the block of fixed assets for com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, the gross sale consideration was reduced and the depreciation has been claimed at the reduced WDV. However, due to clerical mistake, the said amount was omitted in the computation. We find that in the copy of the Income-tax computation, the said disallowance had been mentioned but inadvertently the amount was omitted. We further note that in the balance sheet at col. No.18 of Other Expenses, Rs.5,79,374/- was shown as Loss on sale of fixed assets (page 19 of the paper book), however, in the computation in the head 'Loss on sale / discard of assets, the amount was not reflected (page 6 of the paper book). We also find that even during the course of assessment proceedings, all the information relating to the sale of asset had been furnish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not mean that the assessee is guilty of either furnishing inaccurate particulars or attempting to conceal its income. 20. We are of the opinion, given the peculiar facts of this case, that the imposition of penalty on the assessee is not justified. We are satisfied that the assessee had committed an inadvertent and bona fide error and had not intended to or attempted to either conceal its income or furnish inaccurate particulars." Having regard to the above principles laid down, the claim of the assessee could not be regarded either as "false" or not "bonafide" so as to conclude that assessee has furnished inaccurate particulars of income. Therefore, we set aside the orders of the authorities below and allow the appeal of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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