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2011 (11) TMI 496 - ITAT, KOLKATAPenalty u/s 271(1)(c) - omission of addition of capital gain on sale of fixed asset in computation of total income under the head 'Capital Gains' after deducting the same from the head 'Business Income' - assessee has not filed any computation voluntarily showing STCG on sale of fixed assets till the mistake was pointed out by the department - Held that:- C.I.T.(A) has recorded that in the P/L Account filed along with the return of income, the sale of fixed assets has been duly disclosed under the head 'Other Income' by narration 'Profit/loss on sale of fixed Assets'. Also the details of the sale of the fixed assets along with the amounts and date of sale were duly mentioned in the audit report u/s. 44AB which was filed along with the return of income. Subsequently during 148 proceeding when the mistake was detected, the assessee filed revised computation of income rectifying the mistake and the assessment was completed on such revised computation. The above factual position and observation of the C.I.T.(A) could not be controverted by the DR. As assessee has given the explanation for omission and the same was not proved to be false. There was no dispute that all the relevant facts material to the computation of total income were duly furnished by the assessee and no deficiencies in furnishing of such facts has been pointed out by the A.O. There was thus no cause of action, for deeming fiction being triggered by the conduct of the assessee. Therefore, none of conditions stipulated in Section 271(1)(c) were satisfied - Decided in favor of assessee.
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