Penalty under section 271(1)(c)

--Penalty under section 271(1)(c)Concealment Bona fide mistake of claiming excess depreciation--Assessee had claimed excess depreciation due to a mistake in calculation. Assessing officer did not accept that it was a mistake and therefore, levied penalty under section 271(1)(c). Held: Was not justified, as the excess depreciation originally claimed was on account of bona fide and inadvertent mistake on the part of assessee. Moreso, assessee realised its mistake and pointed out the same, therefore, penalty was not to be levied.

Income Tax Act, 1961 Section 271(1)(c)

Penalty under section 271(1)(c)

--Penalty under section 271(1)(c)Concealment Bona fide mistake of claiming loss as revenue expenditure --During assessment proceedings, assessee after realising its mistake had withdrawn the loss shown as revenue expenditure in its profit and loss account. Assessing officer accepted the withdrawal and completed the assessment however, he imposed penalty under section 271(1)(c). Held: Was not justified, as there was complete disclosure and the loss was claimed by assessee as a revenue expenditure as the Chartered Accountant did not advice the assessee correctly as to the legal position, however, during the assessment proceedings, the mistake was noticed and corrected by assessee.