Penalty u/s 271(1)(c) was imposed despite the assessee withdrawing the exemption claim u/s 10(38) for...

Penalty u/s 271(1)(c) was imposed despite the assessee withdrawing the exemption claim u/s 10(38) for Long Term Capital Gain (LTCG) on sale of penny stocks and offering the corresponding amount as income from "Other sources" in the return filed in response to notice u/s 148. The Tribunal held that the Assessing Officer failed to dislodge the bona fide explanation of the assessee for withdrawing the LTCG exemption claim and offering the amount as income from "Other sources". Explanation 3 to Section 271(1)(c) deems income disclosed in the return filed u/s 148 as concealed income only in specific circumstances, which were not applicable in the assessee's case. No inaccurate particulars or concealment of income were found, and the assessee wit..... .....

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