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2016 (12) TMI 1139 - AT - Income TaxPenalty u/s 271(1)(c) - long term capital gains earned on sale of shares under Buyback scheme wherein no STT was paid was claimed exempt u/s. 10(38) - Held that:- It is an inadvertent and bonafide mistake made by the assessee while filing return of income with the Revenue wherein long term capital gains earned on sale of shares under Buyback scheme wherein no STT was paid was claimed exempt u/s. 10(38) of the Act, and the assessee explanation offered thereto is a bona-fide whereby the assessee claimed it to be inadvertent and bonafide mistake was under an impression that long term capital gains earned on sale of shares is exempt from tax u/s 10(38) albeit no STT was paid, while complete particulars were filed in the return of income filed with the Revenue claiming exemption u/s 10(38) of the Act on long term capital gains earned on sale of shares. It is an inadvertent bona-fide mistake and as such the penalty is not sustainable in the eye of law and the same is hereby ordered to be deleted as the assessee has come forward with an explanation which is a bona-fide explanation which takes it out of provisions of Section 271(1)(c) read with explanation 1 to Section 271(1)(c) of the Act. Merely because a claim is made by the assessee which is not accepted by the AO to be sustainable in law penalty is not leviable automatically more so when all the details were duly furnished by the assessee in the return of income filed with the Revenue and the particulars of income filed by the assessee were not inaccurate. - Decided against assessee.
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