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TMI Blog2017 (5) TMI 1736X X X X Extracts X X X X X X X X Extracts X X X X ..... Form 3CD, which are filed during the filing of return of income. The assessee has not made any disclosure relating to capital gains in the return of income filed. Unintentional, honest mistake, commission of bonafide error, or typographical error, if corrected immediately upon discovery, normally, it does not warrant levy of penalty. In this case, the assessee filed the return of income on 26.09.2012 and notice under 143(2) was issued on 13.08.2013. To agree with the contention of the assessee that the mistake was bonafide and inadvertent, the assessee should have filed revised return of income by incorporating the LTCG and STCG, which arose due to sale of landed properties as well as sale of windmill immediately when it was noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total loss of ₹.33,67,86,780/-. The return filed by the assessee was processed under section 143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny and notice under section 143(2) of the Act dated 13.08.2013 was issued and served on the assessee. In response thereto, the AR of the assessee filed all details including Form 3CA, 3CD and 10CCB, P L account, balance sheet, tax audit report, trial balance and income statement, etc. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has sold two landed properties at Kalapatti and at Dharapuram and the capital gains was worked out at ₹.76,76,230/- and ₹.60,54,912/- respectively totalling to ₹.1,37,31,142 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rop the penalty proceedings. After considering the submissions of the assessee and distinguishing various case law relied on by the assessee, the Assessing Officer levied minimum penalty under section 271(1)(c) of the Act at ₹.7,30,48,152/-. 4. Against levy of penalty, the assessee carried the matter in appeal before the ld. CIT(A) and reiterated the submissions as made before the Assessing Officer. After considering the submissions of the assessee, the ld. CIT(A) has observed as under: 7. However, it is to be noticed that the Managing Director of the Company as the Authorized signatory after having signed the verification column in the return of income had uploaded the return of income duly certifying the same as true and corr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains in the return of income filed on 26.09.2012. Therefore, there was no wilful concealment of particulars from assessee s side and pleaded that the penalty levied under section 271(1)(c) of the Act and confirmed by the ld. CIT(A) should be deleted. On the other hand, the ld. DR has strongly supported the orders of authorities below. 6. We have heard both sides, perused the materials available on record and gone through the orders of authorities below. In the return of income filed by the assessee, the assessee has not disclosed the sale of landed properties as well as sale of windmill. The return filed by the assessee was processed under section 143(1) of the Act and thereafter, the case of the assessee was selected for scruti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid sale of capital assets, as evidenced by the relevant column in Form No. 3CD, Sl. No. 14. The Chartered Accountant has reported capital gains as NIL in the said column which clearly indicates that there was deliberate concealment in reporting substantial capital gains, which arose to the assessee above ₹.21 crores. True disclosure means, disclosing in the return of income and in Form 3CD, which are filed during the filing of return of income. The assessee has not made any disclosure relating to capital gains in the return of income filed. 6.1 Unintentional, honest mistake, commission of bonafide error, or typographical error, if corrected immediately upon discovery, normally, it does not warrant levy of penalty. In this case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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