Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 1118 - AT - Income TaxPenalty u/ 271(1)(c) - unexplained investment - Held that:- As during the course of assessment proceedings, the assessee realized that out of various investments in mutual fund some were redeemed and reinvested and the difference between the sale proceeds of the units of the mutual funds and the amount invested was wrongly considered as dividend income instead of short term capital gain. Hon’ble Supreme Court in the case of Price Waterhouse Coopers Pvt. Ltd. vs. CIT (2012 (9) TMI 775 - SUPREME COURT ) wherein the Hon’ble Supreme Court has held that the assessee should have been careful cannot be doubted, 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 or attempting to conceal its income. As it was pointed out by the ld. Counsel for the assessee that in other years also such mistake occurred and the department has accepted the explanation given by the assessee and has not imposed the penalty. This fact is not controverted by the revenue. Therefore, under the peculiarity of the facts in the present case CIT (A) ought not to have sustained the penalty. Therefore, we set aside the order of ld. CIT (A) and direct the AO to delete the penalty. - Decided in favour of assessee
|