INCOME TAX ACT, 1961

Section-271(1)(c)

Penalty under section 271(1)(c) - Exemption under sections 54EC and 54F - Furnishing inaccurate particulars of income -

Assessee sold a capital asset and stated to have invested the amount in bonds and deposited some amount in Capital Gain Account Scheme held with SBI and claimed deduction under sections 54EC and 54F respectively but no evidence was filed by her in support of claim. AO found that she had never invested in bonds and also out of amount claimed to be deposited in SBI account only minimal amount was actually deposited and that too, after due date of filing of return. AO observing that the assessee was trying to misguide the IT department by furnishing inaccurate details, rejected the claims of the assessee and the entire amount was brought to tax and penalty proceeding under section 271(1)(c) was initiated against the assessee for concealing the income by furnishing inaccurate particulars of income intentionally to avoid tax liabilities. AO in imposed penalty. Held: Assessee has done nothing but made an attempt to show less Long Term Capital Gain by making false claim under section 54EC of the Act, without making any investment and the same was not legally admissible. Appellant consciously and continuously mis-represented the facts and furnished inaccurate particulars of her income by making computation for this claim under sections 54EC and 54F. Revenue had rightly imposed penalty for intentionally furnishing inaccurate particulars of income within the meaning of section 271(1)(c). Therefore, order of AO imposing impugned penalty under section 271(1)(c) of the Act. as upheld by CIT(A) was confirmed.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2013-14

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