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2022 (1) TMI 935 - AT - Income TaxLevy of penalty imposed u/s. 271(1)(c) - Assessee had attempted to set off the capital gains earned during the year against a false claim of capital loss - HELD THAT:- As mistake was noticed by the Assessing officer during the course of assessment proceedings and on being confronted on the issue, the assessee surrendered the Long Term Capital Loss. We have also gone through the computation of income filed by the assessee and we see that this amount of capital loss has been duly mentioned in the computation of income. Therefore, apparently, we find that there is no concealment of any material fact by the assessee. At best, it can be said that the claim made by the assessee with respect to the Long Term Capital Loss was an incorrect claim or a wrong claim but it was not a false claim by any measure in as much as there was only a mistake in the legal sense that the gift made by the assessee to the son was considered as a transfer in the computation of income and the resultant figure was shown as a capital loss. It is also a fact on record that the assessee had accepted the same at the time of assessment proceedings. On the facts of the present case, we are of the considered opinion that it is not a case where the particulars of income in relation to which the penalty has been levied were either incorrect or were concealed. The amount of capital loss has duly been disclosed in the computation of income and, therefore, it cannot said to be a case of the assessee attempting to make a false claim. The Hon'ble Apex Court in the case of CIT Vs. Reliance Petro Products Ltd. [2010 (3) TMI 80 - SUPREME COURT] has clearly held that if all the particulars of income are duly disclosed, the mere disallowance of claim or non-acceptance of a claim would not attract levy of penalty u/s. 271(1)(c) of the Act. - Decided in favour of assessee.
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