TMI Blog2013 (1) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... oting of wrong provision of law namely, section 54F instead of not section 54 by the chartered accountant who had prepared the return on behalf of the appellant, no penalty was leviable either on account of filing of inaccurate particulars or concealment of income u/s 271(l)(c) of the Act. 2. That in the assessment order no findings have been recorded by the assessing officer that the deduction u/s 54F was wrongly claimed with a view to defraud the revenue and therefore, no case for levy of penalty is made out on account of bonafide mistake on the part of the assessee, claiming deduction under wrong provisions of law. 3. That the penalty notice issued by the AO is totally illegal and without jurisdiction on the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as it was advised to so deposit. The deduction was claimed u/s 54 of the Act on the advise of the C.A. and it could not be said that the assessee had concealed its income or furnished inaccurate particulars of income. The Assessing Officer rejecting the explanation of the assessee held that assessee to have furnished inaccurate particulars of income. The Assessing Officer imposed penalty u/s 271(1) (c) of the Act amounting to ₹ 2,94,810/-. The assessee is in appeal against the said order of CIT(A). 4. The Ld. AR for the assessee submitted that the assessee had acted bonafidely on the advise of C.A. and had deposited the amount in the Capital Gains Account Scheme in order to avail benefit of deduction available to it. It was furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 54F are attracted where the assessee intends to invest its sale consideration into a new residential asset. Admittedly, the assessee wanted to invest in a residential property and as the same was not purchased within time, the assessee deposited the amount in Capital Gains Deposit Scheme. However, the assessee deposited amount equivalent to long term capital gains computed in its hand which is requirement of section 54 of the Act. However, u/s 54F of the Act, the requirement is to deposit total sale consideration of the old asset in order to avail the benefit and to pay nil capital gains tax. The assessee had worked out on the advise of its counsel and made the above said deposits. However, because of the default of the assessee in cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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