07 April 2015
The assessee has filed ITR with business loss for the AY 2012-13. As per order, an amount of 44,000 was disallowed as it was spent for purchase of laptop and shown in revenue expenditure by mistake. The assessee has received a demand u/s 271(1)(c) saying that he has concealed the BOA. Now, the assessee agrees for such addition and providing the necessary explanations to prove that its a mistake and there is no mens rea. Is there any caselaw or judgement to boost up his explanation in order to avoid the penalty proceedings?
07 April 2015
If the assessee could prove that it was happened not willfully or not intentional, the AO may waive the penalty. However, it is very difficult to prove so.
CAclubindia
