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2023 (7) TMI 510 - HC - Income TaxPenalty u/s 271(1)(c) - wrongful claim of lower LTCG - Disallowance u/s 94(7) - Dividend Striping - proof of bonafied mistake - ITAT deleted the penalty - HELD THAT:- Tribunal noted that assessee herein had voluntarily filed the revised return duly disclosing the disallowance of the dividend in terms of Section 94(7) and revised its returned income. It is also admitted that the assessee has upon receipt of the assessment order issued by the AO deposited the enhanced amount of tax and had not challenged the assessment order. He at the first instance, admitted its mistake in computation and filed a revised return. Tribunal noted that an error had occurred due to the wrong posting of the entry by the book-keeping staff of assessee with respect to the relevant dividend entry income to a wrong date. Since the assessee had voluminous transactions, it committed an error while posting the relevant dividend entry, which was covered by one voucher since it was received on the same security. Tribunal has observed that it was a reasonable human error which could have been committed on the part of assessee on the same security, dividends were received at two distinct dates, however, the error crept in since, the book-keeping staff posted both the entries of the dividend to the same date. The Tribunal has accepted that upon a perusal of the record that such an error was possible and therefore has accepted the submission of assessee that this was a bonafide error and there was no intention on its part to evade tax. Thus the view taken by the Tribunal is reasonable. It is a view taken after perusing the records in detail. The Tribunal, after appreciating the evidence has found that the assessee has proven that it was a bonafide mistake and no substantial question of law would arise.
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