2021 (8) TMI 1191

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....r Shamim Yahya, A. M.: This appeal by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals)-9, Mumbai ('ld.CIT(A) for short) dated 18.06.2019 and pertains to the assessment year (A.Y.) 2012-13 and the issue raised is confirming the levy of penalty of Rs. 9,52,784/-. 2. Brief facts of the case are that the assessee filed its return of income on 26.09.2....

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....rovision of standard assets which was not an allowable expenditure. The assessee argued that the computation of income was revised by the assessee on its own during the assessment proceedings and the mistake of not adding back the provision for standard asset was inadvertent and bonafide mistake which was corrected by it on it's own. The A.O. in response commented that the revision of the computat....

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....ave heard both the counsel and perused the records. As it is evident from the facts of the case, the assessee in the computation of income has not added back the provision for substandard asset for the purpose of sec 115JB of the Income Tax Act. When the matter was taken up for scrutiny, after 8 months into the scrutiny proceedings the assessee revised computation of income, adding the provision f....

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....it and loss account. It cannot be said that it was not a mistake of the assessee not to add back the same under section 115JB. Once having disclosed the provision for substandard asset which is a normal feature in the preparation of profit and loss account, it will certainly be a mistake not to add the same under the 115JB computation of income. The ld. CIT(A) has completely erred in observing tha....