Disallowance under tax law for investment expenses cannot be applied mechanically; authority must record clear reasons before increasing assessee's su...
Penalty under section 271(1)(c) was not sustainable where the assessee had disclosed the capital gains, deposited the sale proceeds in the Capital Gains Account Scheme within time, and retained the unutilised amount in that account. The Tribunal held that failure to use the full amount within the stipulated period, caused by disputes with the builder, did not by itself establish concealment or furnishing of inaccurate particulars. The assessee had also suo motu informed the AO before reassessment that the exemption period had expired and accepted the taxability of the balance. In the absence of deliberate suppression, the penalty was deleted.
Penalty under section 271(1)(c) was not sustainable where the assessee had disclosed the capital gains, deposited the sale proceeds in the Capital Gains Account Scheme within time, and retained the unutilised amount in that account. The Tribunal held that failure to use the full amount within the stipulated period, caused by disputes with the builder, did not by itself establish concealment or furnishing of inaccurate particulars. The assessee had also suo motu informed the AO before reassessment that the exemption period had expired and accepted the taxability of the balance. In the absence of deliberate suppression, the penalty was deleted.
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