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2019 (1) TMI 548 - HC - Income TaxPenalty u/s 271(1)(c) - addition of capital gain - Held that:- The firm actually paid such amount inclusive of tax payable on such receipt to the sisters. The assessee claimed the deduction of such payments while offering the receipts by way of capital gain in the return filed for the said assessment year 2009-10. AO did not accept the Assessee's contention and insisted that the entire capital gain should have been offered by the firm itself. The assessee in such circumstance argued that in such case the tax paid on the amounts paid offered to to the sisters may be given to the credit of. The Assessing Officer accepted such requests. AO initiated the penalty proceeded for their declaration of capital gain by the assessee. The Tribunal allowed the appeal and deleted the penalty on the ground that the assessee had put-forth a bonafide claim making full disclosures and no question of penalty would therefore be arise. We are in agreement with the view of the Tribunal. The Assessee had raised a claim giving full particulars thereof. Even if such claim was found to be not sustainable, the penalty in any case could not have been levied since the assessee had raised a bonafide claim. - decided against revenue.
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