2023 (7) TMI 611

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..... ome. We note that it is a trite law that every addition or disallowance made during the assessment proceedings cannot be treated either concealment or furnishing inaccurate particulars of income and thereby levying the penalty. The phrase furnishing inaccurate particulars of income has not been defined under the provision of the Act. The income disclosed by the assessee has been assumed as business income and not the income under the head capital gain. At the most, such disclosure can be said as inaccurate claim made by the assessee which cannot be equated with the inaccurate particulars of income. See Reliance Petro Products Ltd. [ 2010 (3) TMI 80 - SUPREME COURT ] Thus the claim made by the assessee not admitted by the AO canno .....

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..... o the total income of the assessee. Accordingly, the AO also initiated penalty proceedings u/s 271(1)(c) of the Act, which came to be confirmed by the AO for Rs. 19,628/- being 100% of amount of tax sought to be evaded on account of concealment of particulars of income. The action of the AO was subsequently confirmed by the Ld.CIT(A). 4. Being aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us. 5. The Ld. AR before us filed a paper book running from pages 1 to 68 and contended that the assessee has made full disclosure about exempted long term capital gain in the computation of income. The Ld. AR for this purpose drew our attention on page 22 of the paper book where the details of long-term capital gain being .....

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..... ing the assessment proceedings cannot be treated either concealment or furnishing inaccurate particulars of income and thereby levying the penalty. The phrase furnishing inaccurate particulars of income has not been defined under the provision of the Act. 7.2 Nevertheless, the income disclosed by the assessee has been assumed as business income and not the income under the head capital gain. At the most, such disclosure can be said as inaccurate claim made by the assessee which cannot be equated with the inaccurate particulars of income. In this regard, we place our reliance on the judgement of the Hon ble SC in the case of CIT Vs. Reliance Petro Products Ltd. reported in 322 ITR 158 where in similar facts and circumstances deleted the l .....

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