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2017 (5) TMI 1736 - AT - Income TaxPenalty levied u/s 271(1)(c) - non-disclosure of particulars of LTCG & STCG - HELD THAT:- CIT(A) has observed that the Chartered Accountant who has quantified the accounts of the assessee company has not disclosed the aforesaid sale of capital assets, as evidenced by the relevant column in Form No. 3CD, Sl. No. 14. The Chartered Accountant has reported capital gains as “NIL” in the said column which clearly indicates that there was deliberate concealment in reporting substantial capital gains, which arose to the assessee above ₹.21 crores. True disclosure means, disclosing in the return of income and in Form 3CD, which are filed during the filing of return of income. The assessee has not made any disclosure relating to capital gains in the return of income filed. Unintentional, honest mistake, commission of bonafide error, or typographical error, if corrected immediately upon discovery, normally, it does not warrant levy of penalty. In this case, the assessee filed the return of income on 26.09.2012 and notice under 143(2) was issued on 13.08.2013. To agree with the contention of the assessee that the mistake was bonafide and inadvertent, the assessee should have filed revised return of income by incorporating the LTCG and STCG, which arose due to sale of landed properties as well as sale of windmill immediately when it was noticed by the assessee before service of notice under section 143(2) of the Act, which was not done so in this case. Therefore, the contention of the assessee that the mistake was bonafide and inadvertent, is not acceptable. Non-disclosure of particulars of LTCG & STCG with the AR of the assessee during the course of assessment proceedings and thereafter filing of computation of LTCG & STCG, cannot be held as voluntary disclosure of particulars. In this case, if scrutiny assessment was not done, the true and complete facts of sale of landed properties as well as sale of windmill would not have come to the light and substantial capital gains would have totally suppressed. It is a clear cut case of concealment of true and complete particulars in the return of income, which warrant penalty under section 271(1)(c) - Decided against assessee.
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