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TMI Blog2013 (4) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- Tribunal records a finding that in the profit and loss account filed along with the return of income, the assessee has clearly described the loss . This loss was added to the net loss in the computation of the total income. Thus, there was complete disclosure - The Tribunal also records that the loss was claimed as a revenue expenditure as the Chartered Accountant did not advice them correctly as to the legal position - The mistake was noticed and corrected by the assessee. The Tribunal concluded the claim for deduction made by the assessee was on account of a bonafide mistake and in such circumstances, the levying of penalty was not justified. Since the decision of the Tribunal is based on finding of fact, we see no reason to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealised that it had wrongly claimed Rs.1.70 crores of depreciation instead of Rs.1.05 crores. This excess claim for depreciation had happened due to a mistake in calculation i.e. Instead of reducing the amount the amount of Rs.32.51 lakhs from Rs.1.38 crores, the amount of Rs.32.51 lakhs was added to Rs.1.38 lakhs resulting in claim for depreciation at Rs.1.70 crores. The Assessing Officer did not accept that it was a mistake and levied penalty under Section 271(1)(c) of the Income Tax Act, 1961 (the Act). (ii) The CIT(A) upheld the order of the Assessing Officer. On further appeal, the Tribunal held that excess depreciation originally claimed was on account of bonafide and inadvertent mistake on the part of the respondent-assessee. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come, the respondent-assessee has clearly described the loss as the loss on sale of its garment unit assets. This loss was added to the net loss in the computation of the total income. Thus, there was complete disclosure. The Tribunal further records that the above loss was claimed by the respondent-assessee as a revenue expenditure as the Chartered Accountant did not advice them correctly as to the legal position. However, during the assessment proceedings, the mistake was noticed and corrected by the respondent-assessee. On the above facts, the Tribunal concluded the claim for deduction made by the respondent-assessee was on account of a bonafide mistake and in such circumstances, the levying of penalty was not justified. (iii) The g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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