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2016 (5) TMI 484 - AT - Income TaxPenalty u/s 271(1)(c) - excess cost of acquisition claim of the assessee - Held that:- the assessee has neither furnished inaccurate particulars of income nor he has concealed the particulars of income from tax authorities, because the assessee has merely enhanced the cost of acquisition of the land for the purpose of computation of income stated to be due to inadvertent mistake, which he has subsequently revised and paid the tax on the remaining amount. In our view, this is a case of mere clerical mistake which was to be examined by the AO at the very outset to take into account the actual cost of the acquisition of the land to assess the short term capital gain. Moreover, the cost of acquisition of the land was already in the notice of the tax authorities, the assessee being a tax payee. So, making incorrect claim does not amount to furnishing of inaccurate particulars. Moreover, in the penalty order, it is nowhere recorded that the details submitted by the assessee in its return are found to be incorrect or erroneous or false and in these circumstances, penalty u/s 271(1)(c) of the Act is not sustainable. - Decided in favour of assessee.
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