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TMI Blog2019 (3) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... rty 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and in law, is it justified by the learned authority to levy penalty, whereby mistake in claiming of deduction under wrong provision of law was bona-fide mistake. 2. The assessee is an individual and filed its return of income on 29.7.2014 declaring total income at nil. During the course of scrutiny assessment proceedings, the AO noted that the assessee has shown income from long term capital gain at nil after claiming deduction U/s 54 of the Act of ₹ 26,30,950/-. On examination of the sale deed the AO noted that the assessee has sold a shop no. A-66, Subhash Nagar Shopping Center, Jaipur vide sale deed dated 21.05.2013 for a consideration of ₹ 44,62,330/-. Thus, the AO was of the view that the assessee is not ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r during the year under consideration. Thus, the ld. AR has submitted that merely because the assessee has made a claim under wrong provisions instead of under correct provisions it will not amount to furnishing of inaccurate particulars of income or concealment of particulars of income attracting penalty provisions U/s 271(1)(c) of the Act. He has further submitted that once the AO has pointed out that the assessee is not eligible for deduction U/s 54 of the Act the assessee has filed a revised computation and made the claim deduction U/s 54F of the Act. Therefore, this is a case of bana-fide mistake on the part of the assessee and his tax consultant. The Ld. AR further submitted that the assessee is an illiterate lady and was fully indepe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the deduction U/s 54F of the Act. 5. We have considered the rival submissions as well as relevant material on record. The assessee has disclosed the sale transaction in the return of income and shown as sale of building and then claimed the deduction U/s 54F of the Act as the assessee also purchased a new residential house. The AO noted that the capital asset sold by the assessee was a shop allotted by JDA and therefore, the deduction U/s 54 is not available to the assessee. The assessee revised its mistake of claiming deduction U/s 54 instead of section 54F of the Act. Accordingly, the assessee revised its computation and made a claim of deduction U/s 54F of the Act. The Assessing Officer has allowed the claim of deduction U/s 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee 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. Accordingly, in view of the provisions of Section 237B of the Act once the assessee has proved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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