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| The Tax Publishers2021 TaxPub(DT) 4477 (Bang-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Assessee-company had disclosed share transaction and from the details furnished by assessee, the AO came to the conclusion that short-term capital loss to the extent of dividend income claimed exempt could not be allowed. There was no case of furnishing of any inaccurate particulars or concealment of income of the assessee. Assessee was under a bona fide belief that transaction was not covered under section 94(7) and mere making of a claim, which was not sustainable in law, by itself didnot amount to furnishing of inaccurate particulars of income. Therefore, it was not a fit case for levy of penalty.
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Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Leviability -
Assessee wrongly claimed short-term capital loss on certain shares which attracted provisions of section 94(7) and AO levied penalty under section 271(1)(c) Further export proceeds were not realized within time prescribed under section 10A. As such, penalty levied on the amount of Rs. 12,86,23,096 to the extent of 100% of tax sought to be evaded. (i.e. tax on assessed income less tax on returned income) Held: Assessee company had disclosed these transactions and from the details furnished by assessee, the AO came to the conclusion that capital loss to the extent of dividend income claimed exempt could not be allowed. There was no case of furnishing of any inaccurate particulars or concealment of income of the assessee. Assessee was under a bona fide belief that it was not covered under section 94(7) and mere making of a claim, which was not sustainable in law, by itself didn't amount to furnishing of inaccurate particulars of income. Therefore, it was not a fit case for levy of penalty.
Relied:CIT Ahmedabad v. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC) and Dy. CIT v. Mastek Ltd. ITA No.118/Ahd/2007 vide Order, dated 16-4-2010.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, BANGALORE BENCH
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