https://www.taxtmi.com/caselaws?id=312426 The ITAT Mumbai upheld penalty u/s 271(1)(c) against an assessee who incorrectly treated sale of a guest house as long-term capital gain instead of short-term capital gain under section 50. The assessee had claimed depreciation on the guest house as a business asset but treated it as non-business asset while computing capital gains. The CIT(A) had deleted the penalty citing difference of opinion, but ITAT found the assessee furnished inaccurate particulars of income. However, ITAT reduced the penalty from 200% to 100% of tax sought to be evaded. Decision favored revenue. en-us Wed, 16 Dec 2015 00:00:00 +0530 Fri, 16 Feb 2024 17:05:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312426 The ITAT Mumbai upheld penalty u/s 271(1)(c) against an assessee who incorrectly treated sale of a guest house as long-term capital gain instead of short-term capital gain under section 50. The assessee had claimed depreciation on the guest house as a business asset but treated it as non-business asset while computing capital gains. The CIT(A) had deleted the penalty citing difference of opinion, but ITAT found the assessee furnished inaccurate particulars of income. However, ITAT reduced the penalty from 200% to 100% of tax sought to be evaded. Decision favored revenue. Case-Laws Income Tax Wed, 16 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312426