Penalty cannot be levied for bonafide mistakes in making wrong claim

Assessee submitted that the lapse in offering the interest earned on fixed deposit was due to oversight on the part of the accountant because of the fact that though assessee’s accounts are subject to tax audit as well as statutory audit, however, the mistake in not offering the interest income on fixed deposit was not pointed out by either of the auditors. Therefore, he submitted, it is a genuine mistake due to oversight and once it came to the notice of the assessee the income was offered to tax.  Undisputedly, in the return of income assessee has failed to offer interest on fixed deposit...