Is expenditure on account of provision of standard assets an allowable expenditure under the Income Tax Act?

Last updated: 09 June 2021

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Quick Summary

This Income Tax Appellate Tribunal case concerns whether expenditure on provisions for standard assets is an allowable deduction. The assessee initially claimed this expenditure but later revised their income computation after scrutiny began. The Assessing Officer imposed a penalty for furnishing inaccurate particulars, arguing the revision was not truly voluntary. The CIT(A) upheld the penalty, finding the assessee's claim of a bonafide mistake unsustainable.

Court :
ITAT Mumbai

Brief :
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/-.

Citation :
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/-.

Daily Limit Reached