No Penalty for Bonafide Mistake in original Return which was revised later

Shri Laxminarayan S. Yadav Vs. Asst. Commissioner of Income Tax (ITAT Mumbai)

There is no dispute that the assessee has made investment in a new residential house for claiming deduction under section 54 of the Act. However instead of showing the actual investment of Rs. 20 lakh, the assessee has claimed higher deduction of Rs. 25 lakh. Notably, in the course of assessment proceedings, the assessee vide letter dated 19^th November 2012, has not only brought to the notice of the Assessing Officer that the actual investment made in the new residential house is Rs. 20 lakh, but, he has also filed a revised computation of income on 20^th November 2012, offering taxable long term capital gain at a higher figure of Rs. 24,98,488. It is also a fact on record that the Assessing Officer has accepted the income shown in the revised computation of income. Therefore, considering the peculiar facts of the present case, we are of the view that the explanation of the assessee to the effect that investment shown in new house at Rs. 25 lakh was due to a bonafide mistake is acceptable. Therefore, taking a lenient view, we hold that the assessee cannot be charged with the offence of concealing particulars of income. Accordingly, we delete the penalty imposed under section 271(1)(c) of the Act.