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2016 (11) TMI 380 - ITAT MUMBAILevy of penalty u/s. 271 (l)(c) - failure to offer rental income - Held that:- Assessee has given bonafide explanations for non-inclusion of rental income in her return of income as the said rental income was stated to belong to the son of the assessee, Mr Vivek Kohli and we find the explanation offered by the assessee as bonafide and quite reasonable keeping in view factual matrix as culled out from records placed before us. Thus as per the assessee , the sum of ₹ 2,76,250/- is chargeable to tax as income in the hands of Mr. Vivek Kohli and not in the hands of the assessee keeping in view that he is also coowner of the property. Thus, in the instant case , the penalty u/s 271(1)(c) of the Act levied by the AO and to the extent it is confirmed by the ld. CIT(A) is not sustainable in view of bonafide explanation given by the assessee in accordance with provisions of Section 271(1)(c) of the Act as the instant case is covered by explanation 1 to Section 271(1)(c) of the Act as the assessee has come out with a bonafide explanation to explain the reasons for non-inclusion of rental income in her return of income filed with the Revenue - Decided in favour of assessee
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