Penalty for inaccurate particulars on return

The Mumbai Bench of the Income-tax Appellate Tribunal held that when a taxpayer claimed both a deduction for expensing the purchase of fixed assets and deprecation on the assets (thus, a double deduction), a penalty applies because the claim itself was not bona fide and lacked good faith. Information provided by the taxpayer on the tax return was given to gain a tax advantage that otherwise the taxpayer was not entitled to, and this attempt was termed as a “filing of inaccurate particulars.” The case is: State Bank of Mauritius. Read an October 2016 report [PDF 315 KB] of KPMG