Successful appeal sets aside penalty for Short Term Capital Gain calculation error under section 271(1)(c)

The appeal by M/s. B.K. Concast Pvt. Ltd. to set aside the penalty imposed under section 271(1)(c) for a Short Term Capital Gain calculation error was successful. The Tribunal found that the error was inadvertent and not an attempt to conceal income. As the details in the return were not deemed incorrect or false, the penalty was deemed unsustainable. The appeal was allowed, setting aside the penalty order.

---

---

Issues:
1. Short Term Capital Gain calculation error leading to penalty under section 271(1)(c) of the Income-tax Act, 1961.
2. Validity of penalty imposed by the Assessing Officer and sustained by the CIT(A).
3. Appeal against penalty order under section 271(1)(c).

Analysis:
1. The appellant, M/s. B.K. Concast Pvt. Ltd., filed an appeal seeking to set aside the penalty imposed under section 271(1)(c) for Short Term Capital Gain calculation error. The original return declared a lower amount, later revised voluntarily to a higher sum, leading to penalty initiation by the Assessing Officer.
2. The Assessing Officer initiated penalty proceedings based on the addition made to the short term capital gain due to an alleged error in cost of acquisition claimed by the assessee. Despite notices, the assessee did not contest, leading to the penalty order being passed.
3. The Tribunal considered whether the assessee had concealed income or furnished inaccurate particulars. The assessee admitted the error in cost calculation but revised it voluntarily. The Tribunal referred to the Supreme Court judgment in CIT vs. Reliance Petroproducts Pvt. Ltd. where it was held that incorrect claims do not amount to inaccurate particulars unless found to be incorrect or false.
4. The Tribunal found that the assessee's error was inadvertent and not an attempt to conceal income. As the details in the return were not found to be incorrect or false, the penalty under section 271(1)(c) was deemed unsustainable. The appeal was allowed, setting aside the penalty order.

This detailed analysis covers the issues involved in the judgment, providing a comprehensive understanding of the legal reasoning and outcome of the case.

---