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2012 (10) TMI 801 - AT - Income TaxPenalty under section 271(1)(c) of the Income Tax Act, 1961 - Whether penalty can be levied if Part of sale consideration has been applied for purchase of another residential house and assessee is allowed proportionate amount of deduction under section 54F when income declared was not correct - Held that:- Mere addition in Income is not sufficient there must be concealment of Income to attract penalty. - Revised return can be filed by an assessee where there is omission or wrong statement or any inadvertent mistake. [Udayan Mukherjee v. CIT 2005 (11) TMI 62 - CALCUTTA HIGH COURT ] - In the Present case under consideration a bonafide mistake has happened in the matter of deduction under section 54F or under section 54 of the Act. This is a case of bona fide misconception and belief, therefore, penalty under section 271(1)(c) is not leviable. - Further when the assessee has disclosed the transaction which is the basis for capital gains tax and though wrongly claimed exemption from the capital gains tax, that cannot be a case of Penalty.Thus, the explanation of the assessee was bonafide and under that facts and circumstances, section of 271(1)(c) is not applicable - A.O. is not justified in levying penalty of Rs. 2,78,660/- under section 271(1)(c) of the Act. Therefore, the same is cancelled. - decided in favor of assessee.
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