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2013 (9) TMI 889 - HC - Income TaxPenalty u/s 271(1)(c) of the Income Tax Act for concealment of Income - Assessee had purchased the capital gain bond in NABARD worth Rs.20.00 lacs, the same was duly disclosed in the return. - proof of investment – Held that:- When the assessee has shown the investment, then the purchases are genuine and the same cannot be treated as bogus - The sale proceedings were made through the bank channel as M/s. CMS Security Ltd., was duly registered in the Stock Exchange. The confirmatory letter dated 16.08.2004 received from M/s. CMS Security Ltd., was produced before AO, where it was confirmed that they have sold the instruments. The only fault of the assessee is that the assessee's name did not appear in the record of the broker. For this act, the assessee cannot be held responsible as there is no fault on her part. In the instant case, there is no concealment on the part of the assessee regarding the transactions - If the income as per law is exempted, then the offer of the assessee is meaningless as the law will prevail and will supersede the "offer" made by the assessee. In the instant case, surrender was to buy the peace as the assessee is not an expert in income tax matter. The Department cannot take the advantage of the ignorance of the assessee as per CBDT Circulr No.14(XL-35)/1955 dated 01.04.1955 mentioned in Parekh Brothers Versus Commissioner Of Income-Tax, Kerala II, Ernakulam, And Others [1983 (8) TMI 17 - KERALA High Court] – Decided against the Revenue.
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