TMI Blog2013 (3) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... t there was an inadvertent mistake on the part of the assessee & it is not contended by the Revenue that above finding of fact by the Tribunal is perverse. Thus no reason to entertain the proposed question - in favour of assessee. Penalty u/s.271(1)(c) - addition made treating premium received on redemption of debentures as income from other sources against claim of assessee as capital gain - ITAT cancelled the penalty levy - Held that:- As it is not the case of the department that the assessee had concealed any particulars of income or furnished inaccurate particulars of income by stating incorrect facts, thus there is only a change of head of income and in the absence of any facts that the claim of the assessee was not bonafide - Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to give details of interest on tax free bonds. While preparing the said details, it was noticed that 6% Government of India Capital Index Bonds purchased during the year had inadvertently been categorized as tax free bonds and, therefore, interest of Rs.75,00,000/- earned on such bonds had also inadvertently escaped tax. The assessing officer levied penalty under Section 271(1)(c) of the Income Tax Act, 1961 (the Act). The CIT(A) upheld the order of the Assessing Officer. On further appeal, the Tribunal in the impugned order records a finding of fact that by inadvertent mistake interest @ 6% on the Government of India Capital Index Bonds was shown as tax free bonds. The Tribunal concluded that there was no desire on the part of the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its computation of income. Further, the Tribunal records that it is not the case of the department that the respondent-assessee had concealed any particulars of income or furnished inaccurate particulars of income by stating incorrect facts. The assessing officer considered the said premium received on redemption of debentures to be taxable under the head income from other sources while the respondent-assessee considered the same to be taxable under the head capital gains. In view of the fact that there is only a change of head of income and in the absence of any facts that the claim of the assessee was not bonafide, the Tribunal deleted the penalty imposed under Section 271(1)(c) of the Act. The revenue has not been able to point out t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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