Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 334 - ITAT MUMBAIPenalty u/s 271(1)(c) - denial of claim of exemption against long term capital gains on the ground that the investment made was in excess of ₹ 50,00,000/- in a particular financial year in terms of section 54EC - HELD THAT:- Facts of the case as narrated by the Assessing Officer above clearly indicate that there was some confusion in this regard as assessee had made two investments in two years and made one claim for both the amounts. There was no case of concealment or furnishing inaccurate particulars as everything was disclosed. The assessee’s claim can also not be said to be ex facie bogus. In these circumstances, the decision of Hon'ble Supreme Court in the case of Reliance Petro Products Pvt. Ltd., . [2010 (3) TMI 80 - SUPREME COURT] comes to rescue the assessee. In this case it was expounded that the rejection of claim by the Assessing Officer cannot ipso facto lead to the conclusion that the assessee deserves to be visited with rigours of penalty u/.s 271(1)(c) of the Act. Hon'ble Supreme Court in the case of Hindustan Steel Vs. State of Orissa [1969 (8) TMI 31 - SUPREME COURT] through larger bench had expounded that the authorities may not levy penalty if the conduct of the assessee is not found to be contumacious. We find that on the facts and circumstances of the present case, the submissions of the assessee and explanations are not ex facie bogus or contumacious. Shortfall in the disclosure of interest income - We find that the assessee’s explanation deserves to be accepted. When interest amount is already disclosed to the Department through ITS details, there is no reason why the assessee would deliberately try to conceal the interest income. Our adjudication and reference of case laws on the earlier issues are also applicable on this issue. We set aside the orders of the authorities below and direct that the penalty should be deleted. Appeal of assessee allowed.
|