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TMI Blog2024 (8) TMI 1426X X X X Extracts X X X X X X X X Extracts X X X X ..... dered view humans in all organizations are fallible to mistake and only because assessee happens to be an organization, a malice cannot be attributed. In fact, assessee reported correct facts at two places in the return at one place it left unreported. Thus, the findings of the CIT(A) to that extent deserves not to be sustained. Decided in favour of assessee. - Shri G.S. Pannu, Hon ble Vice President And Shri Anubhav Sharma, Judicial Member For the Assessee : Ms Radhika Sharma, Advocate And Shri Sumit Mangal, Advocate For the Revenue : Ms Parul Singh, Sr. DR ORDER PER ANUBHAV SHARMA, JM: The appeal preferred by the Assessee is against the order dated 03.03.2023 of the Commissioner of Income Tax (Appeals), Delhi-44 (hereinafter referred as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court has admitted the appeal of assessee by framing substantial question of law and that signifies, that the issue was debatable. Further in assessee s own case for AY 2007-08 and 2008-09, the penalty on same count were deleted by the Tribunal. 2.2 Ld. DR could not dispute these factual aspects thus issues being covered in favour of the assessee have been rightly taken note by CIT(A) to delete the penalty and same requires no interference. Appeal of the Revenue is dismissed. 3. As regards the appeal of the assessee, it comes up that the CIT(A) has sustained the penalty on the basis that he found that the assessee had concealed the income as held by the AO. In this context, if we go through the impugned penalty order, it comes up that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efit and stated that the said concession is to be withdrawn. The Company filed an appeal against the order of the Director of Industries and Commerce in the Honourable Punjab and Haryana High Court and the case was decided in the favor of the Company. Subsequently, the authorities appealed to the Honourable Supreme Court against the above mentioned order. The Apex Court vide its order dated 16 April 2009, without expressing an opinion on the merits of the case and keeping all questions of law open, set aside the impugned judgment of the Honourable High Court and remitted the case back to the Honourable High Court fresh consideration in accordance with law. While the matter was sub judice and pending disposal by the honorable High Court, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to Rs. 1,04,39,001 /- was due to inadvertent mistake. It is observed that the appellant is a big corporate having professional assistance of high order. The appellant is subjected to tax audit. The AR could not explain as to how such a mistake could have occurred in this case. 12.2 It is pertinent to refer to the case of Zoom Communication, delivered by the Hon ble Delhi High Court (327 ITR 510) wherein the Court has held that if the assessee makes a claim which is incorrect in law, Explanation 1 to section 271(1)(c) would come into play and assessee will be liable to penalty. It reasoned as under: 20. The court cannot overlook the fact that only a small percentage of the Income-tax returns, are picked up for scrutiny. If the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y disclosure does not release assessee from mischief of penal proceedings under section 271(1)(c). In this case, the appellant never made the disallowance in the original return of income or revised return of income. It was the AO who discovered this issue during assessment and made addition in respect of the same. Therefore, in this case, there was not even a voluntary disclosure made by the appellant. 12.4 In this background, it is observed that the taxable income covered by this addition would have got unnoticed without the scrutiny assessment, therefore, the appellant s case is squarely covered by the decision of Hon ble Supreme Court in the case in MAK Data (P.) Ltd.(supra) and Hon ble Delhi High Court in the case of Zoom Communication ..... X X X X Extracts X X X X X X X X Extracts X X X X
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