SEA VIEW DEVELOPERS,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-4(2), MUMBAI

The assessee has filed the present appeal against the order dated 06.06.2017 passed by the Commissioner of Income Tax (Appeals)-52, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the A.Y. 2013-14 wherein the penalty levied by the AO has been ordered to be confirmed.

The Ld. CIT(A) erred in not appreciating the fact that appellant due to oversight failed to disallow the sum of Rs.52,274/- being TDS of the previous year and that the default is not intentional but on account of inadvertence.

It is prayed that the penalty of Rs.16,152/- levied by the AO u/s 271(1)(c) may pleased be deleted." The brief facts of the case are that the assessee is a partnership 3. firm, engaged in the business of builders, developers and dealing in real estate. The assessee filed its return of income for the A.Y. 2013- 14 on 22.08.2013 declaring loss to the tune of Rs.52,274/-. The case was selected for scrutiny by issuance of notice u/s 143(2) of the I.T. Act, 1961 on 30/9/2014 which was duly served upon the assessee. During the course of assessment proceeding, AO made disallowance of TDS for earlier years amounting to the tune of Rs.52,274/- on the grounds that the same was not an allowable expenses. Finally, the assessment was completed on Nil income vide order dated 29/12/2015 passed u/s 143(3) of the I.T. Act. Penalty proceeding u/s 271(1)(c) of the Act was also initiated in respect of disallowance of Rs.52,274/- in respect of TDS debited to the P&L Account. As the addition made by the AO was not contested by the assessee, therefore, a show-cause notice dated 29/12/2015 was issued to the assessee to explain as to why penalty should not be levied on the assessee. In response to the notice, the assessee submitted that the disallowances made in the assessment order was not resulted in any tax payment as the assessee filed a return of loss. The assessee submitted that there was no malafide intention to file inappropriate claims and said disallowances A.Y. 2013-14