Case Law Details
Swift Knit Pvt.Ltd. Vs ITO (ITAT Ahmedabad)
Only arguments raised by the ld.counsel for the assessee is that, it was an inadvertent and bona fide mistake while filing the return. Question before us is, how such mistake was committed and how it could be termed as an inadvertent or bona fide mistake. In the case of Price Waterhouse Coopers Pvt. Ltd vs. CIT (supra) a provision for gratuity etc. was made for the regular and adhoc employees. In the audit report, it was pointed by the auditor that provision for adhoc employees was required to be written back. But somehow, while filing the return, accountant failed to add back that amount. An affidavit of the concerned person was filed and it was pointed out that more than thousands of employees were working in that concern. In that background, it was construed as bona fide human error i.e. failure to add back a particular provision. In the present case, no such circumstances have been pointed out by the assessee either before the AO or before the ld.CIT(A). The only statement made is that it was a bona fide human error. This is a very general and sweeping statement. It should be demonstrated with circumstantial evidence as to how this error has happened; what is operating force in the mind of person who has prepared the return, and how he failed to comprehend a particular item. Even the affidavit of that person has not been filed. Therefore, we are of the view that this statement is just being made for giving an explanation. Revenue authorities have appreciated this aspect and rejected the contentions of the assessee. We do not find any merit in the contentions of the assessee, accordingly, appeal of the assessee is dismissed.
FULL TEXT OF THE ITAT JUDGMENT
Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-III, Baroda dated 14.10.2013 passed for the Asstt.Year 2006-07.
2. Sole grievance of the assessee is that the ld.CIT(A) has erred in confirming penalty of Rs.4,29,960/- imposed by the AO under section 271(1)(c) of the Income Tax Act.
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Author Bio
Land-mark order of the Hon’ble Tribunal. There cannot be better way, other than the way Tribunal has proceeded with, to explain the concept of ‘inadvertent mistake’.