Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 505 - AT - Income TaxLevy of penalty u/s 271(1)(c) of the Act – LTCG on sale of shares - Held that:- The assessee has disclosed the income in the return of income, paid tax but claimed that the income is not taxable - The AO did not accept the assessee’s claim and also levied penalty u/s 271(1)(c) in respect of the capital gains which is already disclosed by the assessee in the return of income - The very basis of the levy of penalty u/s 271(1)(c) is the concealment of income or furnishing of inaccurate particulars of income – Relying upon CIT Vs. Reliance Petroproducts Pvt.Ltd. [2010 (3) TMI 80 - SUPREME COURT] - The assessee disclosed the income in the returned income, made a claim by way of a note and the law does not bar or prohibit an assessee from making a claim which he believes is a plausible claim. The assessee’s claim is duly supported by the opinion of a Senior Advocate - Department may or may not accept the assessee’s claim as correct but the law does not bar an assessee from making a claim and the denial of such claim by the Revenue will not make the assessee liable for penalty of concealment of income - all the relevant facts were disclosed by the assessee and it is not the case of the Revenue that any facts disclosed by the assessee in the return of income were found to be incorrect or erroneous or false – thus, the levy of penalty u/s 271(1)(c) of the Act was not justified – Decided in favour of Assessee.
|