Case Law Details
Deco Mica Limited Vs JCIT (ITAT Ahmedabad)
Held that the mistake in not adding back the loss on sale of fixed assets in computation of income was a bona fide mistake inadvertently. Accordingly, penalty u/s 271(1)(c) not imposed.
Facts-
The assessee is a company engaged in the business of manufacturing and trading in laminated sheets. In the assessment completed under Section 143(3) of the Act vide an order dated 22.11.2017, the total income of the assessee was determined by the Assessing Officer at Rs.1,21,41,220/- after making an addition of Rs.3,25,499/- on account of loss on sale of assets debited by the assessee-company in the profit and loss account. Penalty proceedings u/s. 271(1)(c) of the Act were also initiated by the Assessing Officer. AO imposed penalty of Rs. 1,08,853/- being 100% of the tax sought to be evaded by the assessee.
CIT(A) confirmed the penalty imposed by AO. Being aggrieved, the assessee has preferred the present appeal.
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