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2012 (8) TMI 360 - AT - Income TaxPenalty u/s 271(1)(c) - assessment was reopened u/s 147 to bring to tax the distribution of capital asset by way of transfer u/s 45(4) r.w.s. 50 - Held that:- On analyzing the facts of the case it appears that the partners of the assessee firm were of bona fide belief that withdrawing the asset from one of their partnership firm and inducting the same to another of their partnership firm, will not bring in any gain or loss affecting them. Further, the transaction had taken place by passing book entries and not by executing any conveyance deed or sale agreements. As decided in Btx Chemical P. Limited Versus Commissioner of Income-Tax [2006 (7) TMI 155 - GUJARAT HIGH COURT] penalty u/s 271 (1) ( c ) cannot be levied for a mistake committed by the Chartered Accountant of the assessee - in this case as whole scheme of the transactions seems to be wrongly conceived by the Chartered Accountant of the assessee for which the assessee cannot be penalized though being innocent - though the additions are sustained in this case, levy of penalty u/s 271 (1) ( c ) is not warranted and farfetched - in favour of assessee.
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