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2016 (10) TMI 1070 - ITAT CHANDIGARHPenalty under section 271(1)(c) - deduction under section 80IC claim - not adding back the sundry debtors written off in computation of income - Held that:- It is not in dispute that the amount of sundry balances written off was already added back in the computation of income of Baddi Unit on which deduction under section 80IC of the Act have been claimed. The assessee explained that due to inadvertent mistake, same was omitted to be added back in the computation of income of the assessee company. Thus assessee disclosed complete facts in the return of income as well as disclosed the relevant facts before Assessing Officer at the assessment stage. The assessee on realizing the mistake that sundry debtors written off have not been added in the computation of total income, submitted before Assessing Officer to make the addition of the same amount in the computation of income of the assessee for the year under consideration. The assessee has, thus, offered explanation to the same issue. The above facts proved that explanation of the assessee was bonafide and all the facts relating to the same and material to the computation of total income have been disclosed by the assessee. It was not intentional mistake because assessee's company is of higher income group and generally selected for scrutiny assessment. Therefore, there was no reason to believe that assessee would evade the taxes. - Decided in favour of assessee.
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