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2020 (6) TMI 189 - AT - Income TaxPenalty u/s 271(1)(c) - addition of Capital gain under the provisions of section 45(3) and Disallowance of the interest expenses - assessee suo-moto revised the computation of income - HELD THAT:- Assessee has offered income by filing the revised computation of income which was accepted by the revenue. The assessee has filed such revised computation of income before the detection by the revenue about such additions made during the assessment proceedings. Thus it can be inferred that the assessee has not disclose the income with any dishonest intent. Accordingly, in our considered view the assessee cannot be visited with the penalty under section 271 (1)(c) of the Act. Addition in the present case under the head capital gain has been made under the provisions of section 45(3) representing the such addition during the assessment proceedings being deemed income does not automatically attract the penalty provisions as envisaged under the provisions of section 271(1)(c) of the Act. As such, the onus, in the case of deemed income as specified under section 45(3) of the Act, lies on the Revenue to prove that such deemed income is the real income of the assessee in order to attract the penalty provisions specified under section 271(1)(c) - See case of CIT Vs. Baroda Tin works Box [1995 (9) TMI 18 - GUJARAT HIGH COURT] We hold that the assessee has not deliberately undisclosed the income under the head capital gain and claimed excessive interest expenses. As such the assessee himself suo-moto revised the computation and paid the taxes before any finding from the AO. Accordingly, in such a situation the penalty provisions cannot be attracted. Hence, we set aside the finding of the learned CIT (A) and direct the AO to delete the penalty imposed by him. Thus the ground of appeal of the assessee is allowed. - Decided in favour of assessee Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [2020 (5) TMI 359 - ITAT MUMBAI]
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