INCOME TAX ACT 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars of income - Disallowance of loss on account of forfeiture of advance for land -

Assessee company claimed loss on account of forfeiture of advance for land. AO disallowed the said claim on the ground that the loss was in the nature of capital loss and not an item of revenue expenditure and also levied penalty under section 271(1)(c) on the ground that assessee had made wrong claim of expenses and therefore concealed/furnished wrong particulars of income. Held: The notice levying penalty under section 271(1)(c) had not mentioned the specific limb under which penalty had been imposed. Thus, the decision in case of SSA's Emerald [2016 TaxPub(DT) 4242 (SC)] was applicable in assessee's case. Further, in case of Price Waterhouse Coopers Pvt. Ltd[(2012) 211 Taxman 40 (SC) : 2012 TaxPub(DT) 2967 (SC)] it was held that as the bona fide mistake is always allowable mistake and the absence of due care, in a case such as the present, does not mean that the assessee is guilty of either furnishing inaccurate particulars or attempting to conceal its income. Thus, invoking penalty under section 271(1)(c) was not just and proper.

Followed:SSA's Emerald [2016 TaxPub(DT) 4242 (SC)] and Price Waterhouse Coopers Pvt. Ltd[(2012) 211 Taxman 40 (SC) : 2012 TaxPub(DT) 2967 (SC)]

REFERRED :

FAVOUR : In favour of assessee

A.Y. : 2010-11

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