https://www.taxtmi.com/caselaws?id=261778 The High Court upheld the Tribunal's decision to cancel the penalty under Section 271(1)(c) of the Income Tax Act for the assessment year 2007-08. The Court found that the appellant's claim of business profits on the purchase and sale of land as an adventure, though incorrect, did not amount to deliberate tax evasion warranting a penalty. Emphasizing that penalties are for deliberate defaults, not mere mistakes, the Court ruled in favor of the assessee, stating that an unacceptable claim does not automatically attract a penalty. The appeal was dismissed without costs. en-us Wed, 17 Jun 2015 00:00:00 +0530 Sat, 07 Nov 2015 12:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261778 The High Court upheld the Tribunal's decision to cancel the penalty under Section 271(1)(c) of the Income Tax Act for the assessment year 2007-08. The Court found that the appellant's claim of business profits on the purchase and sale of land as an adventure, though incorrect, did not amount to deliberate tax evasion warranting a penalty. Emphasizing that penalties are for deliberate defaults, not mere mistakes, the Court ruled in favor of the assessee, stating that an unacceptable claim does not automatically attract a penalty. The appeal was dismissed without costs. Case-Laws Income Tax Wed, 17 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261778