Silver Oak Buildcon Private Limited Vs ACIT (ITAT Pune)
ITAT Pune held that non-inclusion of disallowance u/s. 43B while filing income tax return is bona fide and inadvertent error. Accordingly, imposition of penalty under section 270A for bona fide mistake without intent to evade payment of tax is not justifiable.
Facts- The assessee is a company registered under the Companies Act and engaged in the activity of construction. During the course of assessment proceedings the Assessing Officer noted that in the tax audit report the auditor has shown the service tax liability of Rs.37 lakh which was not paid on or before the due date. The assessee while filing the return of income was supposed to add back the above amount which was not done. AO, therefore, asked the assessee to explain as to why the said amount of the liability of Rs.37 lakh has not been added back to the total income of the assessee. Rejecting the various explanations given by the assessee and invoking the provisions of section 43B of the Act, AO made addition of Rs.37 lakh to the total income of the assessee. Similarly, on account of late payment of employees’ contribution to PF and ESI, AO, invoking the provisions of section 36(1)(va) r.w.s. 2(24)(x) of the Act made addition of Rs.11,556/- to the total income of the assessee. The assessee accepted the above additions and no appeal was filed.
