2013 (3) TMI 373 - BOMBAY HIGH COURT

Penalty u/s 271(1)(c) - interest received on 6% Government of India Capital Index tax free bonds which was accepted by the assessee during the course of assessment proceedings and not offered voluntarily - ITAT cancelled the penalty levy - Held that:- 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 as there was no desire on the part of the assessee to hide or conceal the income so as to avoid payment of tax on interest from the bonds & as the decision of the Tribunal is based on finding of fact that 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 - Tribunal was correct to delete penalty- in favour of assessee.