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2021 (6) TMI 709 - AT - Income TaxPenalty u/s 271(1)(c) - additional income offered by assessee by way of LTCG in revised return - DR submits that the mistake in the original return of income was apparent as the assessee has not offered the additional income, offered in the revised return - as per AO belated return cannot be revised - HELD THAT:- In reply to the show-cause notice under section 274 read with section 271(1)(c) the assessee explained that due to bonafide mistake while filing original return, the LTCG was not offered. The assessee explained that the mistake was due to the fact that sale consideration paid through cheque was not cleared by 31.03.2013. We find that these facts are not disputed by AO - it is not in dispute that the assessee filed revised return before issuing notice under section 143(2) of the Act. The assessee has also paid due tax along with interest thereon. In our view, the assessee has shown reasonable cause within the meaning of section 273B and no penalty was leviable in the facts and circumstances of the present case. The Hon’ble Punjab & Haryana High Court in CIT vs. Suraj Bhan. [2006 (4) TMI 107 - PUNJAB AND HARYANA HIGH COURT] by following the decision of Hon’ble Supreme Court in CIT Vs Suresh Chand Mittal [2001 (6) TMI 63 - SC ORDER] held that when the assessee files a revised return showing higher income and gives explanation that he offered higher income to buy peace of mind and avoid litigation, penalty cannot be imposed merely on account of higher income having been subsequently declared. In view of the aforesaid factual and legal discussion, we are of the view that no penalty was leviable on the facts of the present case. Appeal of assessee is allowed.
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