No Penalty Is Leviable U/s 271(1)(C) If Bona Fide Mistake In Original Return Was Corrected By Revised Computation During Assessment: Mumbai ITAT
On finding that assessee had made bona fide mistakes in the computation of its total income while filing its original return, which were later corrected by filing revised computation during assessment proceedings, the Mumbai ITAT deleted the penalty levied u/s 271 of the Income Tax Act. The Bench of the ITAT comprising of Sandeep Singh Karhail and Prashant Maharishi observed that, “the fact that the donation given was stated in the Tax Audit Report and the deduction under section 80G of the Act was also computed by the tax auditor, however even then the assessee failed to claim a deduction under section 80G of the Act supports the claim of the assessee that the mistakes were sheer inadvertent human error.” As per the brief facts of the case, the Assessee's return was selected for scrutiny, wherein AO found that the assessee has debited Rs. The Bench observed that once the aforesaid discrepancies were pointed out the assessee accepted its mistake and filed the revised computation of income, and paid the tax difference of Rs. Therefore, on finding that the assessee made bona fide mistakes in the computation of the total income, ITAT allowed the assessee's appeal.
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