https://www.taxtmi.com/caselaws?id=211782 The Tribunal upheld the CIT(A)'s decision to cancel the penalty imposed on the assessee under section 271(1)(c) of the Income Tax Act, 1961. The Tribunal emphasized the importance of a bona fide explanation provided by the assessee, stating that even if a legal claim is technically incorrect, it does not necessarily constitute furnishing inaccurate particulars of income. The Tribunal highlighted that the explanation must be reasonable and acceptable, and in this case, found the assessee's explanation valid regarding the claim for exemption under section 54 G. Consequently, the appeal was dismissed, affirming the cancellation of the penalty. en-us Fri, 17 Feb 2012 00:00:00 +0530 Fri, 30 Mar 2012 13:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211782 The Tribunal upheld the CIT(A)'s decision to cancel the penalty imposed on the assessee under section 271(1)(c) of the Income Tax Act, 1961. The Tribunal emphasized the importance of a bona fide explanation provided by the assessee, stating that even if a legal claim is technically incorrect, it does not necessarily constitute furnishing inaccurate particulars of income. The Tribunal highlighted that the explanation must be reasonable and acceptable, and in this case, found the assessee's explanation valid regarding the claim for exemption under section 54 G. Consequently, the appeal was dismissed, affirming the cancellation of the penalty. Case-Laws Income Tax Fri, 17 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211782