ITAT Pune: No Penalty When Mistake Attributable to Tax Consultant – Bona Fide Conduct Accepted

Gangadhar Gopinath Wagh Vs ITO (ITAT Pune) In this case, penalty u/s 271(1)(c) was levied on a salaried assessee for claiming excess deductions, allegedly resulting in inaccurate particulars of income. Key facts: Assessee’s return was filed by a tax consultant who fraudulently claimed excess deductions without the assessee’s knowledge. On discovering the issue: Assessee voluntarily paid tax + interest (before issue of notice u/s 148) Filed correct return in response to notice AO still levied penalty, upheld by CIT(A), on ground that correction was not voluntary ITAT Findings: Assesse...