Revenue's Penalty Appeal Dismissed, CIT(A) Decision Upheld

The Tribunal dismissed the Revenue's appeal, affirming the deletion of the penalty under section 271(1)(c) by the CIT(A). The decision was based on the prompt rectification of the mistake during assessment proceedings and reliance on professional advice, in line with legal precedents.

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Issues:
- Penalty under section 271(1)(c) for non-disclosure of working of capital gains rectified during assessment proceedings.

Analysis:
1. The appeal by Revenue challenged the deletion of penalty under section 271(1)(c) by CIT(A) for non-disclosure of working of capital gains rectified during assessment proceedings. The AO initiated penalty proceedings as the assessee declared loss in the return of income, which was rectified during assessment proceedings. The AO alleged inaccurate particulars of income, leading to penalty imposition.

2. The CIT(A) deleted the penalty, emphasizing that the conversion of capital assets into stock-in-trade was genuine, as per the decision in CIT vs. Reliance Petroproducts Pvt. Ltd. The CIT(A) noted that the assessee rectified the mistake promptly during assessment proceedings, attributing it to the chartered accountant's oversight. The CIT(A) concluded that there was no concealment or inaccurate particulars of income, following the Supreme Court's decision.

3. The Tribunal upheld the CIT(A)'s decision, stating that the assessee rectified the mistake promptly during assessment proceedings, relying on the advice of the chartered accountant. The Tribunal noted that the complete details were available before the AO, and the mistake was rectified in good faith. The Tribunal confirmed the deletion of the penalty, citing the Supreme Court's decision in Reliance Petro Product Private Limited.

4. In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the deletion of the penalty under section 271(1)(c) by the CIT(A). The Tribunal's decision was based on the prompt rectification of the mistake during assessment proceedings and the reliance on professional advice, in line with legal precedents.

This detailed analysis covers the issues involved in the legal judgment comprehensively, highlighting the key arguments and decisions made by the authorities involved.

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