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2020 (3) TMI 675 - ITAT MUMBAIPenalty u/s 271(1)(c) - non-disclosure of working of capital gains - the assessee had rectified the mistake during the course of assessment proceedings - HELD THAT:- As complete details/ particulars were available before the AO in regard to this transaction of sale of sales and conversion of its investment into stock-in-trade. In view of the explanation of the assessee that there has been an inadvertent mistake/ error in filing the return of income and that also occurred entirely on accountant oversite of the chartered accountant while computing income which was required to be computed after considering the provisions of section 45A(2) of the Act. Having regard to the fact that investments were converted into stock-in-trade during the previous year relevant to this assessment year, the charter accountant should have considered the computation of income under section 45(2) of the Act. We noted that this mistake was immediately rectified by the assessee during the assessment proceedings and according to us, this mistake has occurred on the advice of chartered accountant, who has filed the return of income. Hence, we are of the view that the CIT(A) has rightly relied on the decision of Hon’ble Supreme Court in the case of Reliance Petro Product Private Limited [2010 (3) TMI 80 - SUPREME COURT]. Hence, we are of the view that the CIT(A) has rightly deleted the penalty. - Decided against revenue.
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