December 2022
40. Where the assessee had paid indirectly higher tax than actually liable, it shows that there was no malafide intention on the part of the assessee and the Department had no revenue loss. Since there is no revenue loss to the Department, therefore, there is no question of levying penalty on the assessee.
Bagaria Trade Impex vs. ACIT
ITA No. 310/Jp./2022
A.Y.: 2017-18
Date of order: 27th September, 2022
Section: 270A
40. Where the assessee had paid indirectly higher tax than actually liable, it shows that there was no malafide intention on the part of the assessee and the Department had no revenue loss. Since there is no revenue loss to the Department, therefore, there is no question of levying penalty on the assessee.
FACTS
The assessee firm filed its return of income declaring therein a total income of Rs. 95,48,815. While assessing the total income of the assessee an addition of Rs. 1,84,650 was made to the returned total income on account of interest income short declared in the return of income.
During the previous year relevant to assessment year under consideration the assessee in its return of income declared interest income of Rs. 16,61,850 (13,46,850 + 3,15,000). As per Form No. 26AS, the assessee’s interest income was Rs. 18,46,500 (14,96,500 + 3,50,000). Thus, the AO held that the assessee had declared less interest income.
In the course of assessment proceedings when this fact came to the knowledge of the assessee, the assessee vide its letter dated 31st July, 2019 stated that it is willing to pay tax on this amount and requested the AO to adjust the amount of refund due to it. It was mentioned that the assessee had, in its return of income, consid
