9911796707
TMI Blog2006 (3) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Income-tax Act." 3. The assessee submitted a return of income in time for the assessment year 1994-95, enclosing therewith a chart of carried forward business loss of Rs. 49,58,341, unabsorbed depreciation of Rs. 89,47,877 and unabsorbed investment allowance of Rs. 4,360 making a total of Rs. 1,39,10,578. In the computation of total income though the assessee stated the words "Add : Disallowables", which were Rs. 14,41,303, in the calculation portion a mistake came to be committed whereby instead of such amount being added, it came to be substracted. Therefore, the figure after addition which ought to have been Rs. 56,78,677 became Rs. 30,96,071. 4. In this regard, details are reproduced as below : Profit as per P&L a/c 47,69,163 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly and, our commonsense understanding tells us that when we were carrying forward the loss of Rs. 1.39 crores and on any view of the matter, when no tax was payable--mistake or no mistake--the question of additional tax cannot imaginably arise. Further it should be appreciated that if it was ever our intention we would have never stated, as pointed out above, 'add : disallowables'. A pure and simple pardonable mistake has happened and, therefore, we request you to kindly direct to revise the assessment order whereby the additional tax of Rs. 3,59,100 has come to be imposed on the assessee. 7. We have heard the learned representatives of the parties and perused the record. From the facts of the case, we noticed that the assessee instea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have the effect of overruling the decision of Smt. Ratanprabha (supra). However, for this purpose, we apply the principle of settled law that if two views are possible, the view favourable to the assessee should be adopted. CIT v. Vegetable Products Ltd. [1973] 88 ITR 192 (SC). The decisions cited by the learned Departmental Representative are distinguishable on fact as in those cases no adjustment under section 143(1)(a) on account of such unknowingly human natural error/pardonable mistake. In the light of above background of discussion we find that the levy of additional tax is in nature of a penalty or punishment for a default committed by the assessee. A default is not the same thing as an inadvertent of a bona fide mistake. If addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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