Tax Tribunal Overturns Penalty: Mistake in Helicopter Sale Reporting Deemed Bona Fide, No Inaccurate Income Filing Found.

The Tribunal allowed the appeals filed by the assessee, a partnership firm, for assessment years 2013-14, 2014-15, and 2015-16, setting aside the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961. The Tribunal found the appellant's error in reporting the sale of a helicopter to be bona fide and inadvertent, thus reversing the orders of the CIT(A) and quashing the penalty. The Tribunal concluded that the mistake did not constitute furnishing inaccurate particulars of income, thereby allowing the appeals and providing relief to the assessee for all contested assessment years.

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Issues:
Appeals against orders of CIT(A) for assessment years 2013-14, 2014-15, and 2015-16 - Levy of penalty u/s 271(1)(c) - Allegation of furnishing inaccurate particulars of income.

Analysis:
Issue 1: Levy of Penalty u/s 271(1)(c)
- The appellant, a partnership firm, filed appeals against orders of CIT(A) for assessment years 2013-14, 2014-15, and 2015-16 concerning the levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961.
- The Assessing Officer had imposed a penalty based on the addition made under section 50 of the Act, related to the sale of a Helicopter by the appellant.
- The appellant had inadvertently failed to reduce the entire sale consideration from the opening value of the block of assets, resulting in the addition of short term capital gains.
- The appellant contended that the mistake was inadvertent and not a case of furnishing inaccurate particulars of income or concealing income.
- The appellant's stance was supported by the fact that the information regarding the sale was correctly disclosed in the return of income and accompanying documents.
- The Tribunal held that the appellant's error was bona fide and inadvertent, falling within the ambit of the decision in Price Waterhouse Coopers (P.) Ltd. vs. CIT.
- The Tribunal also cited the case of Sir Shadi Lal Sugar & General Mills Ltd. vs. CIT to emphasize that not contesting an addition in the appellate forum does not automatically warrant the levy of a penalty.
- Consequently, the Tribunal reversed the lower authorities' orders and quashed the penalty, allowing the appeals filed by the assessee for all the assessment years in question.

Final Decision:
- The Tribunal allowed all three appeals filed by the assessee, setting aside the penalty imposed under section 271(1)(c) for the assessment years 2013-14, 2014-15, and 2015-16.

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