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2011 (6) TMI 332 - AT - Income TaxPenalty u/s 271(1)(c) - disclosure of interest income and in the return filed in response to notice under section 153A - CIT(A) deleted the addition - assessee claimed the status of RBNOR in the original return filed under section 139(1) - Held that:- Assessees continued to claim status of RBNOR even after amendment to provisions of section 6(6) of the Act while the legal adviser, who prepared the original returns also did not draw the attention of these assessees to the relevant provisions and consequently, interest income from FCNR deposits continued to be claimed as exempt u/s 10(15)(iv)(fa) of the Act - Since the bank also did not deduct tax at source even after amendment in law, these assessees explained that they were under the bona fide belief that their income continued to be exempt - It was only after the search that they were advised that income was no longer exempt due to amendment in law and consequently, interest income from FCNR deposits in the bank was declared in their returns filed in consequence of search - As such the decision in the case of Sunilchandra Vohra's case (2009 (6) TMI 682 - ITAT MUMBAI), it was held that bona fide ignorance of the law regarding applicability of provisions of the Act and the CA having not drawn the attention of the assessee to the relevant provisions of law, is a valid ground for not imposing penalty for concealment. Also see Reliance Petroproducts (P.) Ltd. case [2010 (3) TMI 80 - SUPREME COURT] - Decided in favour of assessee.
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