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2017 (4) TMI 959 - ITAT MUMBAIPenalty levied U/s. 271(1)(c) - false claim of exemption of LTCG under Section 10(38)- Held that:- Now when the assessee had made a complete disclosure of the purchase and sale of shares of M/s Talent Infoway Limited in her return of income, the genuineness and veracity of which set of transactions had been accepted by the CIT(A) and all adverse inferences arrived in the said context by the A.O. had been set aside and put to rest, therefore merely for the reason that the LTCG emerging on the sale of the aforesaid shares had been claimed by the assessee as exempt u/s 10(38), the same in itself would not tantamount to concealment or furnishing of inaccurate particulars of income by the assessee. We thus in the backdrop of the facts involved in the present case hold a strong conviction that an incorrect claim in law by the assessee, wherein the latter after disclosing the complete details of transactions in respect of purchase/sale of shares of M/s Talent Infoway Limited (supra), had therein claimed the LTCG relatable to the said scrips as exempt under Section 10(38), cannot in itself lead to levy of penalty under Section 271(1)(c). That our aforesaid view is fortified by the judgment of the Hon’ble Supreme Court in the case of CIT Vs. Reliance Petroproducts (Ltd.) (2010 (3) TMI 80 - SUPREME COURT) held that mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. - Decided in favour of assessee
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