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2022 (3) TMI 29 - AT - Income TaxPenalty u/s 271(1)(c) - furnishing inaccurate particulars/concealment of particulars of income levied on the assessee on account of disallowance of Foreign Exchange Fluctuation treating the same as capital in nature - HELD THAT:- As is evident from the assessment order, on the first instance when asked to file details of Foreign Exchange Fluctuation, the assessee had surrendered the said amount to taxation. The revenue was not even in the possession of the details of Foreign Exchange Fluctuation and therefore there was no question of any detection by the revenue of concealment of any inaccurate particular of income on this count. We agree with assessee that the impugned foreign exchange fluctuation was surrendered for taxation by the assessee immediately on becoming aware of the fact that it had not done so in the computation of income during assessment proceedings and even before detection by the Revenue The undisputed fact that the assessee had added this Foreign Exchange Fluctuation in its block of assets of plant and machinery and claimed depreciation thereon, which is clearly brought out from the computation of income for the year filed before us, lends credence to the explanation of the assessee that it was left out to be added to its income mistakenly. Having capitalized the amount of foreign exchange fluctuation in the relevant block of assets reveals its clear intent of treating it as capital expense. Not adding it back while computing the income for the year can be safely beleived to be mistakenly done unless otherwise proved. We agree with the assessee that it was mistake on his part for not having added the amount to his income. There is, therefore we hold no case for levy of penalty u/s 271(1)(C) of the Act - Decided in favour of assessee.
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