2018 (4) TMI 173

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....'the Act') qua the assessment year 2006-07 on the ground inter alia that :-  "On the facts and in the circumstances of the case and law, whether Ld. CIT (A) has erred in deleting the penalty u/s 271(1)(c) of Rs. 36,32,553/- which was imposed on the confirmation of the addition of Rs. 68,23,535/- on account of denial of benefit u/s 10(38) in respect of LTCG and addition of Rs. 30,27,182/- on account of discrepancies in valuation of closing stock by Ld. CIT (A) as well as Hon'ble ITAT." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : On the basis of assessment completed u/s 143(3) of the Act making addition of Rs. 68,23,535/- on account of disallowance CLAIMED u/s 10(38) of the Act in respect....

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....tion of Rs. 30,27,182/- on account of discrepancies in the valuation of closing stock by the AO has been affirmed by ld. CIT (A) as well as the Tribunal. 6. In the backdrop of the aforesaid facts and circumstances of the case, the sole question arises for determination in this case is :- "as to whether the assessee has concealed particulars of income or has furnished inaccurate particulars of income during assessment proceedings?" 7. So far as question of claiming benefit u/s 10(38) of the Act on account of long term capital gains to the tune of Rs. 68,23,535/- is concerned, the ld. AR for the assessee contended that it is a case of bonafide mistake having tax neutral effect. When undisputedly appeal against the order of the Tribun....

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....ccurate, the assessee cannot be held guilty of furnishing inaccurate particulars. In order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By no stretch of imagination can making an incorrect claim tantamount to furnishing inaccurate particulars. There can be no dispute that everything would depend upon the return filed by the assessee, because that is the only document where the assessee can furnish the particulars of his income. When such particulars are found to be inaccurate, the liability would arise. To attract penalty, the details supplied in the return must not be accurate, not exact or correct, not according to the truth or erroneous. Where there i....