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2018 (7) TMI 654 - ITAT MUMBAIPenalty u/s. 271(1)(c) - whether the treatment given by the assessee to the sale proceeds of unsold stock can be treated as furnishing of inaccurate particulars? - Held that:- We find that the fact of sale of flats was never concealed. There is a difference of opinion between the AO and the assessee about the treatment to be given to the transaction. As far as quantum proceedings are concerned, they stand on different footing. Any addition to the income of an assessee or disallowance of a claim cannot and should not lead to automatic levy of penalty. What has to be seen is that as to whether the explanation filed by the assessee during the penalty proceedings was a plausible explanation. In the case under consideration the assessee had claimed that it was under bonafide impression that profit arising to it was taxable under the head capital gains. Taxability of an item of income under a particular head should not result in levy of penalty - Decided in against revenue
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