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TMI Blog2019 (2) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... nstant case, assessee has furnished explanation thus we have to examine, whether the explanation furnished is bonafide and the assessee has disclosed all material facts to the computation of his total income. We note that all the facts in respect of long-term capital loss of ₹ 66,94,673/-was available before the Assessing Officer in the profit and loss account and schedule of selling and administrative expenses. Only mistake was made on the part of the accountant who prepared the computation of the income. Material facts about the long-term capital loss was fully disclosed in the profit and loss account. On being pointed out this mistake, the assessee has admitted and even did not file any further appeal on the addition. This shows ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i B.K. Anand, CA For the Respondent : Shri Praveen Kumar, Sr.DR ORDER PER O.P. KANT, A.M.: This appeal by the legal heir of the assessee has been filed against the order dated 23/09/2015 passed by the Ld. Commissioner of Income-tax (Appeals)-17, New Delhi [in short the Ld.CIT(A) ] in relation to penalty for filing inaccurate particulars of income for assessment year 2010-11. The grounds of appeal raised by the assessee are reproduced as under: 1. That on the facts and circumstances of the case the learned CIT (Appeal) erred in confirming the penalty order in respect of penalty u/s 271 (1 )(c) of the Act in respect of additions of ₹ 66,94,673 and ₹ 2,99,122 made to the returned income of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computation of income (ii) entertainment expenses of ₹ 2,99,122/- claimed by the assessee for entertaining customers disallowed in absence of supporting evidences (iii) donation of ₹ 25,000/- claimed as deduction was disallowed in absence of documentary evidence (iv) salary income shown in the return of income short by an amount of ₹ 14,00,000/- 2.1 In the assessment order under section 143(3) of the Act dated 31/03/2013, the Assessing Officer initiated penalty proceedings under section 271(1)(c) of the Act for furnishing inaccurate particulars of the income. The Assessing Officer issued a show cause notice on 22/02/2013 and in response to which, the assessee filed reply on 07/05/2013. Thereafter, the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputation of income and hence the income was calculated less by way of the amount of ₹ 66,94,673/-. Accordingly, he made the addition. Before us, the Ld. counsel has filed copy of the profit and loss account along with relevant schedules of the profit and loss account. We find that the assessee has debited long-term capital losses (equity), amounting to ₹ 66,94,673/-under Schedules VII (selling and administrate expenses) of profit and loss account. Before the Ld. CIT(A), it was contended on behalf of the assessee that she had engaged services of a firm of chartered accountants for preparing and filing her return through e-filing services. It was further submitted that this mistake was admitted by the assessee and no appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t liability on the assessee for concealment or furnishing inaccurate particulars of income while filing return of income. Further, he referred to the decision in the case of ACIT Vs Jasubhai Business Service Private Limited, (2006) 5 SOT 36 Mum, wherein it is held that any fact material for determination of an item as income or material for correct computation is not filed or that fileed is not correct, then the assessee would be liable for penalty under section 271(1)(c) of the act. The Ld. CIT(A) also referred to the other decisions mentioned in the impugned order including the decision of the Hon ble Delhi High Court in the case of CIT versus Escort Finance Ltd (183 Taxman 453) (del) 292 ITR 658, wherein it is observed that if claim made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im. In the instant case, assessee has furnished explanation thus we have to examine, whether the explanation furnished is bonafide and the assessee has disclosed all material facts to the computation of his total income. We note that all the facts in respect of long-term capital loss of ₹ 66,94,673/-was available before the Assessing Officer in the profit and loss account and schedule of selling and administrative expenses. Only mistake was made on the part of the accountant who prepared the computation of the income. But the material facts about the long-term capital loss was fully disclosed in the profit and loss account. On being pointed out this mistake, the assessee has admitted and even did not file any further appeal on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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