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2018 (8) TMI 926 - HC - Income TaxLevy of penalty u/s 271(1)(c) - appellant wrongly claimed loss by debiting it to P & L Account on account of loss on sale of assets whereas the same was capital loss and not business loss. - The Tribunal had held that the claim of the assessee to treat loss on sale of assets as business loss was not a bona-fide mistake and, therefore, the penalty under Section 271(1)(c) of the Act was imposable. Held that:- In order to attract the provision of Section 271(1)(c) of the Act, the assessee must be found to have failed to prove that explanation offered is not only bona-fide but all the facts relating to the same and material to the computation of his income have been disclosed by him. If the assessee has disclosed all facts and material in computation of his income, it cannot be said that he has furnished inaccurate particulars of his income. In the present case, it is clear that the assessee has disclosed particulars of the loss in sale of assets which was not in dispute. Instead of treating that loss as capital loss the assessee had treated the same as business loss. Thus, the assessee cannot as such be said to have not disclosed all the material to the computation of his income. - This was a wrong belief of the assessee that loss in sale of assets could be treated as business loss and not the capital loss. Levy of penalty deleted as there is no concealment of income - Decided in favor of assessee.
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