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2015 (4) TMI 790 - AT - Income TaxPenalty u/s 271(1)(c) for furnishing of inaccurate particulars of income - Inadvertent and bona fide error - Existence of bona fide reasons and cause for filing the revised return - Held that:- As per ratio of the decision of Hon’ble Jurisdictional High Court of Delhi in the case of Arvind Nagpal [2015 (4) TMI 706 - DELHI HIGH COURT] wherein it has been held that the calibre and expertise of the assessee has little or nothing to do with the inadvertent error. Their lordships further held that the assessee should have been careful. But the absence of due care in a case such as the present does not mean that the assessee is guilty of either furnishing inaccurate particulars of attempting to conceal its income. Following the decision of Hon’ble High Court in the case of Arvind Nagpal [2015 (4) TMI 706 - DELHI HIGH COURT], we are inclined to hold that in the present case, the assessee filed its return of income as an individual without any professional assistance. Subsequently, the assessee filed a revised return reclassifying the income and the AO assessed the income of the assessee at the income declared in the revised return filed on 27.2.2007. The detailed explanation submitted by the assessee on 2.4.2008 (Paper Book page 9 to 13) clarify entire facts and circumstances in which original return of income and revised return of income were filed. We further note that during the course of assessment proceedings, the assessee submitted detailed justification and reasons for filing the revised return which were placed on record. We further note that the reasons offered by the assessee during penalty proceedings on the same line cannot be held as an afterthought and these submissions support the existence of bona fide reasons and cause for filing the revised return. We further note that the assessment stood framed on the revised return figure itself which also support the bona fide intention of the assessee. Under the facts and circumstances as noted above, it cannot be validly held that either the assessee furnished inaccurate particulars of its income or the assessee has concealed particulars of its income and thus, penalty u/s 271(1)( c) cannot be imposed. - Decided in favour of assessee.
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