2023 (1) TMI 628 - AT - Income Tax
Penalty levied u/s 271(1)(c) - bogus LTCG - exemption under section 10(38) denied - HELD THAT:- In this case, AO assessed the tax as offered by the assessee. AO has not made any independent investigation in respect of the assessee that the company in which shares were purchased. AO came a conclusion through general enquiry that the company in which the shares were purchased by the assessee is a bogus company. In this case, we find that the assessee has neither concealed the income nor furnished inaccurate particulars of income. The assessee filed all the details before the AO. Once it came to the notice of the assessee that the company in which shares purchased is bogus company, she offered the entire income for taxation.
Thus, in our considered opinion, it is not amount to concealment of income or furnishing of inaccurate particulars warranting levy of penalty under section 271(1)(c) - CIT(A) has rightly directed the AO to delete the penalty levied under section 271(1)(c) of the Act and we find no infirmity in the order passed by the ld. CIT(A). Appeal filed by the Revenue is dismissed.