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The Tax PublishersITA Nos. 787, 978, 937 & 996 of 2016
2019 TaxPub(DT) 0524 (Bom-HC)INCOME TAX ACT, 1961
Section 271(1)(c)
Where upon realizing the error that certain expenses were reduced from income inadvertently, assessee issued suo motu revised computation of income before AO during assessment proceedings, penalty levied on assessee under section 271(1)(c) was not sustainable.
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Penalty under section 271(1)(c) - Validity - Assessee suo moto issued revised computation of income -
AO submitted that Tribunal had erred in deleting the penalty under section 271(1)(c), in as much as, assessee filed its revised return of income to withdraw the excessive amount of deduction under section 80-IA, only after being detected by AO and being confronted during assessment proceedings, which clearly amounted to furnishing of inaccurate particulars of income liable for penalty. Held: Since upon realizing the error that certain expenses were reduced from income inadvertently and other indirect expenditure was missed out while claiming original deduction under section 80-IA, assessee issued suo moto revised computation of income before AO during assessment proceedings, Tribunal was justified in deleting the penalty under section 271(1)(c) levied on assessee.
Relied:Price Waterhouse Coopers (P.) Ltd. v. CIT (2012) 348 ITR 306 (SC): 2012 TaxPub(DT) 2967 (SC) CIT v. Reliance Petro products (P) Ltd. (2010) 322 ITR 158 (SC): 2010 TaxPub(DT) 1683 (SC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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