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2019 (3) TMI 283 - ITAT JAIPURPenalty u/s 271(1)(c) - not entitled for the deduction U/s 54 - after denial of deduction U/s 54 assessee made the claim deduction U/s 54F - claim made under wrong provisions - bonafide mistake - due to the difference of computation of the deduction under two provisions i.e. 54 & 54F claim reduced, the AO made an addition - HELD THAT:- This is a clear case of the claim made under wrong provisions of Section 54 instead of U/s 54F of the Act. The assessee has also produced the copy of the family ration card, Voter ID Card, Electricity Bill, gas connection receipts and saving bank account to establish the fact that the assessee was using the property in question for their residential purpose. These facts clearly make out a case that it was a bana-fide and inadvertent mistake and omission on the part of the assessee to claim deduction U/s 54 instead of section 54F of the Act. Therefore, we find that once, the assessee has explained the reasons for making a wrong claim and the facts explained by the assessee are duly established from the record and found to be true then even if the addition was made by the AO due to the claim made under wrong provisions of the Act. It will not amount to furnishing inaccurate particulars of income or concealment of particulars of income. In view of the provisions of Section 273B once the assessee has proved that there was a reasonable cause for making the claim of section 54 instead of section 54F of the Act then the penalty U/s 271(1)(c) of the Act cannot be imposed. Accordingly we delete the penalty levied by the AO U/s 271(1)(c) - Decided in favour of assessee.
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