Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 643 - ITAT MUMBAIPenalty u/s 271(1)(c) - Disallowing 25% of the foreign travel expenses - assessee submitted that one of the director and advisor travelled abroad to expand its business and incurred the above said expenditure - STT charges addition - as argued assessee has made genuine mistake inadvertently - HELD THAT:- We notice that assessee has debited the audit fees after making payment directly to legal and professional fees after deducting proper TDS. The assessee once again passed a journal entry for audit fee to be payable and debited the same in auditors remuneration account. The assessee has not noticed this mistake until the mistake was pointed out by the assessing officer in the assessment proceedings, when this mistake was pointed out by the assessing officer, the assessee accepted the mistake. The same was rectified in the books and respective entries was passed in the subsequent assessment year. The details for the same is placed on record, be noted that this mistake was not detected by the assessee since it has debited the same expenditure in 2 different Ledger accounts. As the mistake was pointed out and the assessee has reversed the whole provisions made by the assessee at the year end 31.03. 2008 to the extent of ₹ 6,06,680/-. In our view this type of mistakes is possible while making provisional entries at the year end. With regards to STT claim also, the assessee has failed to disallow the same in computation statement and this mistake is out of oversight. Considering the total income declared by the assessee, we do not see any reason that assessee would indulge in concealing the income by furnishing inaccurate particulars to the extent of expenditure/income disallowed by the AO and the case of the assessee is similar to the case of Price Waterhouse [2012 (9) TMI 775 - SUPREME COURT]. Therefore we are inclined to accept the contention of the assessee and delete the penalty levied by the assessing officer. - Decided in favour of assessee.
|