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2017 (11) TMI 108 - AT - Income TaxLevy of penalty u/s.271(1)(c) - capital gain - Held that:- In this case, all the information given in the return was not found to be incorrect or inaccurate. In this case, any statement made or any detail supplied by the assessee is factually not incorrect hence, prima-facie assessee could not be held guilty or furnishing inaccurate particulars of income. In order to expose the assessee to the penalty unless the case is strictly covered by the provision the penalty provision cannot be invoked. In this case assessee mainly made a claim of capital gain which is as per Revenue assessee is not entitled by itself would not attract the penalty under section 271(1)(c) of the Act. We find that assessee has merely claimed the capital gain which was not acceptable or was not acceptable to Revenue would not attract the penalty under section 271(1)(c) of the Act. We notice that the assessee has furnished all the details and claim made by the assessee, in our view, cannot be considered to be not bonafide, i.e. it was one of the possible claims. Further the assessee has offered explanation before the tax authorities and the same was not found to be false. Under these set of facts, we are of the view that the impugned penalty is not sustainable. Accordingly, we set aside the order passed by the learned CIT(A) and direct the Assessing Officer to delete the penalty. - Decided in favour of assessee.
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