No penalty for a Bonafide Error

The Rajkot Bench of the Income Tax Appellate Tribunal (ITAT) deleted penalties imposed under Section 271(1)(c) of the Income-tax Act, holding that a bona fide computational error and voluntary payment of tax cannot be equated with concealment of income or furnishing of inaccurate particulars. 

The Tribunal observed that all material facts had been fully disclosed in the return of income, audit report, and assessment proceedings, and that the additions arose from adjustments based on already disclosed information. 

Relying on established Supreme Court precedents, the Tribunal held that every disallowance or adjustment does not automatically warrant penalty proceedings.