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| The Tax Publishers2020 TaxPub(DT) 2424 (Ahd-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where excessive deduction under section 54F was claimed under bona-fide belief, the AO was not justified in concluding that the assessee had furnished inaccurate particulars of income by claiming excessive deduction under section 54F and hence, the penalty levied under section 271(1)(c) was liable to be deleted.
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Penalty under section 271(1)(c) - Leviability - Furnishing of inaccurate particulars of income - Excessive deduction claimed under section 54F
Assessee claimed deduction under section 54F against long-term capital gain. However, assessment proceedings he filed revised computation of income and restricted his claim under section 54F. Accordingly, AO was of the view that the assessee had furnished inaccurate particulars of income by claiming excessive deduction under section 54F. Hence he levied penalty under section 271(1)(c). Held: Assessee immediately on receipt of notice under section 142(1) revised the computation of income restricting the deduction claimed under section 54F and paid the due taxes. Thus, it was transpired that the assessee claimed excessive deduction under section 54F under bona-fide belief and he did not claim the excessive deduction deliberately. Further, Revenue did not brought any material suggesting that the assessee deliberately furnished the inaccurate particulars of income. Further, it is settled that any addition/disallowances made during the quantum proceedings does not automatically justify the levy of penalty under section 271(1)(c). Accordingly, the penalty levied under section 271(1)(c) was deleted.
REFERRED : CIT v. Reliance Petroproducts Pvt. Ltd. (2010) 189 taxman 322 (SC) : 2010 TaxPub(DT) 1683 (SC) Snita Transport (P.) Ltd. v. ACIT (2019) 42 taxmann.com 54 (Guj) : 2019 TaxPub(DT) 6561 (Guj-HC)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, AHMEDABAD BENCH
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