No Penalty for Wrong Claim or Head of Income – ITAT Deletes Section 271(1)(c) Penalty

Smt. Subbalakshmi Kurada Vs DCIT (ITAT Bangalore) In , the ITAT Bangalore deleted penalty under Section 271(1)(c), holding that mere disallowance or change in head of income does not amount to concealment or furnishing inaccurate particulars. The assessee had: Shown rental income partly as rent and partly as hire charges (under business income) Claimed Section 54 deduction on reinvestment made jointly with her son The AO: Reclassified hire charges as house property income Restricted Section 54 deduction Levied penalty alleging inaccurate particulars However, the Tribunal observed: All fac...