2018 (5) TMI 236

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....t of readymade garments and job work. For the Asstt. Year 2012-13, they have filed their return of income on 20.9.2012 declaring a total loss of Rs. 99,32,310/- under the normal provisions of the Income-tax Act, 1961 ("the Act") and a book loss of Rs. 98,38,802/- u/s 115JB of the Act. However, subsequent to the issuance of notice u/s 143(2) and 142(1) of the Act on 23.9.2013 and 8.5.2014 respectively, the assessee realized the mistake that crept in the return of income and filed a revised computation for disallowing the following amounts: S. No. Nature of Disallowance Amount (Rs.) 1. Loss on sale of fixed assets debited to Profit & Loss Account 44,59,006.70 2. Fixed Assets balance w/off debited to Profit & Loss Account 3,93,060.....

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....s vide letter dated 5.12.2014 duly disallowing the aforesaid expenses, as such, no deliberate attempt to claim the inadmissible expense as deduction could be attributed to the assessee. Further, according to the assessee, the authorities below failed to notice that the assessee company has been make huge losses in its business operations with a carried forward loss of Rs. 4.69 crores upto 31.3.2012 due to which in order to sustain, assessee curtailed business operations by reducing the manpower and since no qualified person was available with the assessee, the mistake had occurred. 3. Learned AR brought to our notice by way of balance sheet for the year ending 31.3.2012 to demonstrate that the employee expenses in respect of the reporting ....

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....ion that want of trained and skilled staff coupled with the contents of the tax audit report lead them to allow the mistake to occur which they sought to rectify by way of revised computation. 6. The learned DR while placing reliance on the decision reported in CIT vs NG Technologies (2015) 57 taxmann.COM 389 (DEL) submitted that since the assessee did not file revised return voluntarily but had filed the same after the learned AO confronted the assessee and was asked to explain the claim of loss in question in the Profit & Loss account, the authorities below are duty bound to levy the penalty, as such, the same cannot be disturbed. 7. We have perused the material placed in the light of submissions on either side. In so far as the persist....