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TMI Blog2020 (10) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Facts relating to the case are discussed in brief. The assessee is engaged in the business of property development. It filed its return of income for the year under consideration on 30.9.2011 declaring total income of Rs. 39,94,510/- under normal provisions of Act and declared book profit of Rs. 8,49,857/- u/s 115JB of the Act. In the scrutiny proceedings, the A.O. determined the total income of the Assessee at Rs. 95,61,903/- by making certain additions. The A.O. noticed that the assessee has furnished audit report in form No.29B in respect of book profit computed u/s 115JB of the Act. The auditor had determined the book profit at Rs. 1,52,18,852/-. As noticed earlier the assessee had declared book profit of Rs. 8,49,857/- in the retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of selection of the case on scrutiny. Accordingly, the A.O. held that the penalty is leviable u/s 271(1)(c) of the Act. Accordingly, levied minimum penalty of Rs. 28,63,812/- u/s 271(1)(c) of the Act. 4. The Ld. A.R. initially advanced his arguments on various legal grounds. On merits, the Ld. A.R. submitted that the profit before tax declared by the assessee in the profit & loss account placed at page 52 of the paper book was Rs. 1,52,18,851/-. The above said figure included rental receipt of Rs. 3,44,64,027/- and corresponding expenses. In the return of income, the profit and loss account figures are required to be entered at "Part A - P & L". In this part, the data/details of profit and loss account are required to be entere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has correctly disclosed the book profit amount in all other documents. There was under reporting of book profit in the return of income and it has occurred due to erroneous filling of the return of income. Accordingly, he submitted that the mistake or error represents bonafide mistake and it has happened inadvertently. The Ld A.R placed his reliance on the decision rendered by Hon'ble Supreme Court in the case of Price Waterhouse coopers P Ltd vs. CIT (2012)(348 ITR 306) and submitted that the penalty should not be levied for erroneous clerical mistakes. 8. The Ld D.R, on the contrary, submitted that the assessee has obtained audit report in Form no.29B on 03-09-2011 itself and the auditor has computed the book profit u/s 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details and accordingly fill up various schedules. 10. In the return of income, in "Part A-P&L" , the data relating to Profit and Loss account are required to be filled in. A perusal of the details filled therein would show that the assessee has filled in business income details therein, instead of filling up the details of Profit and Loss account. This mistake had the cascading effect and the software has picked up the erroneous figures for computing book profit u/s 115JB of the Act in "Schedule MAT". It is the submission of the assessee that the book profit computation escaped the attention, since the tax was paid as per normal computation of total income. During the course of assessment proceedings only, the mistake was realised be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order. In that sense, even the Assessing Officer seems to have made a mistake in overlooking the contents of the Tax Audit Report. 19. The contents of the Tax Audit Report suggest that there is no question of the assessee concealing its income. There is also no question of the assessee furnishing any inaccurate particulars. It appears to us that all that has happened in the present case is that through a bona fide and inadvertent error, the assessee while submitting its return, failed to add the provision for gratuity to its total income. This can only be described as a human error which we are all prone to make. The calibre and expertise of the assessee has little or nothing to do with the inadvertent error. That the assessee sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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