2019 (5) TMI 1553

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.... the fact that the satisfaction for initiation of penalty was recorded in the order sheet and the assessee was also made aware of initiation of such penalty proceedings by issuing notice u/s 274 dated 31.03.2016. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in holding that this is not a case of inaccurate particulars of income despite fact that AO has detected inaccurate particulars of income during course of assessment proceedings. The assessee had not suo-moto disclosed application of section 2(15) of the Income Tax Act with a view of evade tax on income to tune of Rs. 76,24,221/-. 3. The appellant craves leave to add/alter any/all grounds of appeal before or at the time of hearing of the Ap....

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....f the AR are as under: i. The AO has not recorded his satisfaction in the assessment order (original as well as the new assessment order) and therefore, the penalty proceedings are void ab initio; ii. The appellant has not furnished any inaccurate particulars of income as the particulars of accumulated balance as on 31.03.2008 was duly reflected in the return of income and the charitable status of the appellant has under gone a change as a result of amendment to section 2(15) of the Act which was beyond the control of the appellant; iii. The AR has distinguished the case laws relied upon by the AO and has stated that the appellant had made the claim under the bonafide belief that the claim was correct; iv. The AR has further contend....

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....s of income. The particulars of accumulated balance as on 31.03.2008 was duly reflected in the return of income and it is seen that the charitable status of the appellant has under gone a change as a result of amendment to section 2(15) of the Act which was beyond the control of the appellant. In my view, it cannot be said that the appellant has furnished inaccurate particulars of income. It is a case of making a claim which is not in accordance with the provisions of the Act. As a result of the amendment to the provisions of the Act, the incorrect claim of the appellant can be treated as a bonafide mistake as claimed by the appellant. In the case of Price Waterhouse Coopers Pvt.Ltd vs C.I.T & Anr, Hon'ble Supreme Court has held that- "....