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2016 (1) TMI 1086 - ITAT AHMEDABADPenalty order u/s 271(1)(c) - Income from house property - Held that:- Section 271(1)(c) refers to imposition of penalty if the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income. Examining the facts of the case of assessee in this aspect we find that income from house property was certainly disclosed by the assessee in its return of income on estimate basis because the house property was not rented during the year and assessee has disclosed his income at ₹ 500/-. The AO further estimated this income at ₹ 27,500/- and finally ld. CIT(A) reduced the addition from ₹ 27,500/- to ₹ 1,900/-. Certainly there was no deliberate concealment on the part of the assessee and the addition confirmed is only on the basis of estimate arrived at by taking value from other sources, which in this case was the municipal ratable value and certainly such type of addition do not come under the clutches of section 271(1)(c) of the Act. We, therefore, delete the penalty u/s 271(1)(c) of the Act calculated on the sustained concealed income of ₹ 1,900/-. - Decided in favour of assessee Short term capital loss on sale of car - Held that:- From going through the facts and judicial pronouncement we find that assessee was possessing only one car and the same was sold during the financial year 2000-01. There was no other asset in the block of asset relating to motor car and, therefore, after deduction of sale value from the purchase value there arose a short term capital loss. There is no dispute on the part of the Revenue on the value of purchased car and sale value of car. Assessee has claimed the short term capital loss at ₹ 3,21,440/- against the business income. Certainly all the facts relating to these transactions of purchase and sale of car were duly disclosed in the books of account of the assessee and the addition made by the Assessing Officer was on account of merely wrong claim made by the assessee. Penalty u/s 271(1)(c) of the Act is imposable where the assessee has concealed particulars of his income or furnished inaccurate particulars of such income. Hon’ble Supreme Court in the case of CIT vs. Reliance Petroproducts (P) Ltd. (2010 (3) TMI 80 - SUPREME COURT ) has held that mere making a claim which is not sustainable in law in itself will not amount to furnishing of inaccurate particulars regarding income of the assessee. - Decided in favour of assessee
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