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2015 (10) TMI 747 - ITAT DELHIPenalty under section 271(1)(c) - undisclosed remittance from US - contention of the assessee that the non-inclusion of said amount in the income was on account of bonafide belief of the assessee as she was a non-resident in earlier year, as such the said amount was not taxable in those years - Held that:- In the present case, it is an admitted fact that the assessee was a non-resident till the assessment year 2002-03, thereafter she shifted to India. The assessee was earning honorarium from the University of California, Irvine as there was a treaty between the USA and the India, the amount so received by the assessee was not taxable in USA. The assessee was under a bonafide belief that the income earned in USA was exempt under DTAA between USA and India and this fact was disclosed in Form No. 1040NR for the year 2005 comprising the Income Tax Return filed by US Non-Resident Alien. From the aforesaid facts it appears that there was no malafide intention of the assessee to either conceal any income or to furnish inaccurate particulars of income because the amount received as honorarium was disclosed by the assessee and due taxes was paid when it was pointed out that the said amount i.e. foreign remittance in USD received from USA was taxable. In the present case, the AO also made the addition by disallowing 50% of the expenses claimed by the assessee on account of her visit to University of California. The said disallowance was purely on adhoc basis, so it cannot be said that the assessee furnished inaccurate particulars of her income or concealed the income. In my opinion the present case can be a good case or making the addition but not for levying the penalty u/s 271(1)(c) of the Act. Therefore, considering the peculiar facts of this case deem it appropriate to delete the penalty levied by the AO and sustained by the ld. CIT(A). - Decided in favour of assessee.
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