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The Tax PublishersITA No 145/Chny/2021 And ITA No 548/Chny/2021
2022 TaxPub(DT) 7168 (Chen-Trib)INCOME TAX ACT,1961
Section 271(1)(c)
Where there was no mistake on part of the assessee, however, duplication of assets had occurred due to the mistake of his staff, to which assessee already admitted and paid tax on differential amount. Therefore, penalty proceedings initiated against him were deleted.
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Penalty under section 271(1)(c) - Concealment - Furnishing of inaccurate particulars of income - Differential amount of opening WDV of assets and closing WDV of assets
Assessee's case was selected for scrutiny for the reason that, “Opening WDV of current year is greater than Closing WDV of previous yearâ€. AO disallowed the additional depreciation claimed by the assessee, and added to its income, which was accepted by it and paid tax thereon.AO initiated penalty proceedings under section 271(1)(c) for furnishing of inaccurate particulars of income. CIT(A) also confirmed the order of AO. Assessee appealed to Tribunal. Held: Mistake had occurred at the office of the Chartered Accountant and there was no intention of the assessee to evade the tax as duplication of assets had happened while calculating the depreciation as per Income Tax Act while computing the tax computation sheet by his staff. Moreover, the assessee had already accepted assessment and paid taxes and he was under bona fide belief in claiming the depreciation. Hence, penalty was deleted.
REFERRED :
FAVOUR : In favour of the assessee
A.Y. : 2016-17
IN THE ITAT, CHENNAI BENCH
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