Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 793 - ITAT AHMEDABADPenalty under section 271(1)(c) - assessee had claimed interest expenses in contravention of the provisions of section 43B in the Return of Income - nature of mistake and quantum of accumulated and current losses - Bonafide mistake - Held that:- The details about unpaid interest to the GIC were available from the material placed before the Assessing Officer by the assessee on his own. The assessee had accumulated brought forward losses of ₹ 3.36 crores and, in the current year itself, the assessee had incurred a loss of ₹ 2.25 crores which was claimed for a carry forward. The assessee had subsequently closed down the business and the matter was before Board for Industrial and Financial Reconstruction (BIFR). The assessee’s claim of having missed adding back the inadmissible interest deduction on account of a bonafide and inadvertent mistake cannot be rejected as improbable. It is more of a silly mistake than an attempt to evade tax or furnish inaccurate particulars. The explanation of the assessee is thus a plausible explanation. We may also add that while examining the explanation of the assessee, one has to see is whether the explanation is an explanation acceptable to a fact finding authority and that while “an assessee is not to prove the explanation to the hilt positively but, as a matter of fact, materials must be brought on record to show that what he says is reasonably valid. See COMMISSIONER OF INCOME-TAX, BIHAR VERSUS NATHULAL AGARWALA AND SONS [1985 (3) TMI 57 - PATNA HIGH COURT] - Decided in favour of assessee.
|