Case Law Details
Rameshchandra P. Bhatt Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that penalty under section 271(1)(c) of the Income Tax Act not leviable on account of human error committed by the accountant as the same is not willful attempt to conceal income.
Facts- The case of assessee was selected under limited scrutiny under section 143(2) of the Act. During the assessment, the assessee vide letter dated 18-08-2017 submitted that due to oversight by the accountant an amount of Rs. 5 lakh being professional receipt form M/s Health Secure (India) Pvt. Ltd was not included in income but the credit of TDS on the same was claimed. The mistake was identified while preparing data for assessment and on realization of mistake he immediately deposited the due taxes. The AO accordingly completed the assessment after making addition of Rs. 5 lakh as mentioned above. The AO also initiated penalty proceedings under section 271(1)(c) of the Act for furnishing inaccurate particular of income.
Conclusion- Held that there was human error committed by the accountant of the assessee due to which impugned professional receipt of Rs. 5 lakh omitted to be included in the total income. Thus, there was no willful attempt from the assessee to conceal his income. The explanation furnished by the assessee in this regard is bona fide and duly substantiated by the affidavit of the accountant. Therefore, I hereby set aside the finding of the learned CIT(A) and direct the AO to delete the penalty imposed by him. Hence the ground of appeal of the assessee is hereby allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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