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2015 (3) TMI 616 - HC - Income TaxPenalty u/s 271(1)(c) - assessee had claimed the Receipt of ₹ 1.11 crore as capital receipt in order to evade tax - Tribunal upholding the decision of the CIT(A) in deleting the penalty - Held that:- The respondent-assessee had originally paid an amount of ₹ 54 Lakhs as a consideration for the development agreement in 1995. In the previous year relevant to assessment year, the respondent-assessee received from the vendor an amount of ₹ 1.65 Crores which included an amount of ₹ 54 Lakhs which was originally paid in 1995 by the assessee to the vendor. Therefore, only an amount of ₹ 1.11 Crores which was received in excess of amount paid by the respondent-assessee to the original vendor could be a subject matter of taxation and we find that the disclosure of ₹ 1.11 Crores which was made by the petitioners as a part of its notes to accounts as well as letter dated 29 October 2005 alongwith its claim of not being taxable was filed along with the Return of Income. Thus there has been a complete disclosure of all facts as held by CIT(A) and the Tribunal. Besides the claim made by the respondentassessee of not being taxable was not found to be not bonafide. As held by the Supreme Court in Reliance Petroproducts Pvt. Ltd. (2010 (3) TMI 80 - SUPREME COURT ) making of an incorrect claim would not tantamount to furnishing inaccurate particulars of income. In this case, the assessee bonafide believed that the difference of ₹ 1.65 Crores and ₹ 55 Lakhs is not chargeable to tax and had so stated before the Assessing Officer. The fact that the explanation of assessee is not accepted in quantum proceedings would not ipso facto visit the assessee with penalty in the absence of the claim being held to be not bonafide. - Decided in favour of assessee.
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