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2023 (9) TMI 261 - HC - Income TaxPenalty u/s 271(1)(c) - Error in computing LTCG - CIT(A) while deleting the penalty, found that on perusal of the original working of long-term capital gain, the entire sale consideration of five properties was considered and from that 95% was treated as cost of acquisition resulting into loss - as share of the assessee was only 5% but by mistake in the absence of purchase and sale deeds, the entire sale consideration was taken into computation of long term capital gains - ITAT confirmed the order of CIT(A) - HELD THAT:- Perusal of the orders indicate that the CIT(A) and the Tribunal concurrently held that apparently there was a bona fide mistake made by the assessee owing to lack of documents at the time of filing of return of income. We find that the AO as rightly held by the CIT(A) and ITAT ought to have accepted the claim of the assessee that the claim of loss was not intentional. Moreover, as observed by the CIT(A) reduction in capital loss cannot be considered for imposition of penalty. What was also noted by the CIT(A) that the return of income was filed belatedly and hence capital loss could not be allowed to be carried forward and set off against income of subsequent year under this head. There was no incentive for returning capital loss and therefore deserved to be ignored while imposing penalty. No substantial question of law arises.
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