Bona fide disclosed legal claims on slump-sale negative net worth do not constitute inaccurate particulars for penalty purposes.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Penalty under section 271(1)(c) is not leviable where a taxpayer fully discloses a slump-sale transaction, consideration and negative net worth, but computes capital gains by treating negative net worth as nil on a bona fide legal interpretation. A claim that is ultimately unsustainable does not amount to furnishing inaccurate particulars merely because a quantum addition is sustained or not contested. Divergent Tribunal views and admission of a substantial question of law support the conclusion that the treatment of negative net worth was genuinely debatable. The penalty deletion was sustained and the Revenue's appeal failed.....