Harish Kumar (HUF) v. Dy. CIT

Decision:    In assessee’s favour.

Penalty under section 271(1)(c) Concealment or furnishing of inaccurate particulars Leviability Bona fide mistake

Assessee filed revised computation of income wherein long-term capital gain (LTCG) was increased due to disallowance under section 94(7). Accordingly, AO levied penalty under section 271(1)(c) on account of furnishing of inaccurate particulars. Assessee’s case was that there was an inadvertent clerical error committed by Chartered Accountant and on the advice of Senior Chartered Accountant. Assessee filed revised computation voluntarily.

As evident assessee had not filed any false claim and the mistake occurred due to inadvertent bona fide error in the claim due to one entry by accounts staff posted at wrong date due to huge voluminous transactions and dividend coupons for dividend from same security punched at one voucher. Assessee had paid voluntary taxes on disallowance under section 94(7) and AO had completed assessment on the basis of details furnished by assessee, hence, under the circumstances assessee had not furnished inaccurate particulars of income and AO was accordingly not justified in levying penalty under section 271(1)(c).