ITAT Deletes Penalty u/s 271(1)(c) for Non-Disclosure in ITR Due to Accountant’s Ignorance

Dharmendrakumar B Mehta Vs ITO (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT) of Ahmedabad recently ruled in favor of the appellant, Dharmendrakumar B Mehta, deleting the penalty imposed under Section 271(1)(c) of the Income Tax Act. The case revolved around an accountant’s error leading to the non-disclosure of income in the appellant’s Income Tax Return (ITR), which resulted in the imposition of penalties. This case brought to light the fact that mistakes by a third party such as an accountant could lead to severe penalties for the assessee, despite the non-deliberate ...