M/S H.P. Tourism Development ... vs Dcit, Shimla on 22 February, 2018
6. It is pertinent to mention that in a similarly situated case where the auditors
had opined that disallowance under section 40A(7) had to be made but,
inadvertently the same was not made by the assessee. The Hon'ble supreme Court
held the same not to be a fit case for imposition of penalty in the case of Price
Water house Cooper Pvt. Ltd versus CIT reported as 348 ITR 306 page (Supreme
Court). Relevant Portion of the said judgement is being reproduced hereunder for
the kind perusal and ready reference of this Hon'ble Forum:-