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2015 (5) TMI 366 - ITAT PUNEPenalty u/s 271(l)(c) - assessee has concealed the income by way of Capital Gain on sale of land at 44/A/1, Dhanori, Pune and furnished inaccurate particulars thereof - Held that:- In the present case too having regard to the conspectus of facts and circumstances, non-declaration of capital gain in assessment year 2007-08 cannot be construed as a deliberate lapse but it could only be construed as an inadvertent error of judgement on a point of law and therefore no penalty u/s 271(1)(c) of the Act is imposable. Moreover, it is also apparent from the contours of the dispute that the claim of the assessee for taxability of capital gains in assessment year 2008- 09 instead of 2007-08 has been rejected not on the basis of any falsity or inaccuracy in facts or particulars furnished by the assessee but only on an application of a legal position. In this context, a mere making of a claim, which is not found to be sustainable in law by the Assessing Officer cannot by itself be construed as furnishing of inaccurate particulars of income within the meaning of section 271(1)(c) of the Act, as held by the Hon’ble Supreme Court in the case of CIT vs. Reliance Petro products Pvt. Ltd., (2010 (3) TMI 80 - SUPREME COURT ). Thus lower authorities have erred in imposing the penalty u/s 271(1)(c) of the Act on the impugned aspect of the matter. - Decided in favour of assessee.
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