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2021 (2) TMI 98 - ITAT MUMBAIPenalty levied u/s 271(1)(c) - deferred tax asset written off debited in the profit and loss account as exceptional item but the same has not been disallowed in the computation of taxable income - inadvertent human error or 'mens rea' - HELD THAT:- Mere omission from the return of an item of receipt does neither amount to concealment nor deliberate furnishing of inaccurate particulars of income unless there is some evidence to show or some circumstances found from which it can be gathered that the omission was attributable to an intention or desire on the part of the assessee to hide or conceal the income so as to avoid the imposition of tax thereon as held in D.M. Dahanukar v. CIT[1967 (2) TMI 9 - BOMBAY HIGH COURT] and M. Hussain Ali & Sons v. CIT [1965 (2) TMI 112 - MADRAS HIGH COURT]. In the instant case, the assessee had made an inadvertent computation error while filing its return of income and accordingly the same was accepted by them in the course of assessment. The assessee has not in any way taken any benefit by carrying forward a higher loss. It is relevant to mention here that the financial statements of the AY 2012-13 were on record which reflect the deferred tax asset written off in the profit & loss account and also a Note to that effect in the Schedule of significant accounting policies. The observation made by the AO that there was no independent evidence and the finding that the same has been revealed in the assessment proceedings only is not correct. We find that the carried forward loss has not been set off subsequently and the assessee has huge carry forward assessed losses of earlier years which were otherwise available for set off Deferred tax asset written off was reported in the financials, however, the same was inadvertently left to be added back to the net loss before tax while making the tax computation. This error is only a computation error made in the return of income which occurred due to overlooking the contents of the profit and loss account. The contents of the financial statements do not conceal any particulars. The error committed by the appellant is a bona fide and inadvertent one. The obtaining factual matrix in the instant case is broadly similar to the decision in Price Waterhouse Coopers Pvt. Ltd. [2012 (9) TMI 775 - SUPREME COURT], instead of Dharmendra Textiles Processors [2008 (9) TMI 52 - SUPREME COURT]. - Penalty deleted - Decided in favour of assessee.
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