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2020 (6) TMI 293 - ITAT HYDERABADPenalty u/s 271(1)(c) - mistake in calculation of Capital Gains - incorrect claim has been made by the assessee by claiming of cost of acquisition - shares received in gift - HELD THAT:- Assessee’s father had acquired the shares and after being allotted the bonus shares, the total number of his shares was 5220, and it was out of these 5220 shares, that the assessee has been gifted 2000 equity shares on 14.11.2014 - assessee has been allotted shares after allotment of bonus shares by her father and therefore, Explanation 2 of section 55(2) would definitely apply as the assessee has received the shares by way of gift. As per Explanation 2 of sub-section 2 of section 55, the cost of acquisition wherein an asset has been acquired u/s 49(1) then the cost of asset to the previous owner has to be considered as cost of acquisition and therefore find no incorrect claim has been made by the assessee by claiming of cost of acquisition. For whatever reasons during the assessment proceedings, the assessee has withdrawn the same and has also paid taxes. As satisfied that the claim of the assessee i.e. the claim of acquisition was bonafide and therefore, the penalty u/s 271(1) (c) is not justified. Interest income - Assessee has earned interest income the assessee has not offered the entire income to tax. This is certainly a case of furnishing of inaccurate particulars of income and the assessee has not explained as to why she did not report or offer the entire interest income to tax. Therefore, the penalty to the extent of interest income is confirmed. Assessee’s appeal is partly allowed.
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