Erroneous Claim without Mens Rea Not Grounds for Section 276 Proceedings under Income Tax

Anurag Bagaria Vs Income Tax Department (Karnataka High Court) Karnataka High Court held that incorrect claim or erroneous claim would not amount to willful evasion. Further, mere fact of not accurate tax, not exact tax or erroneous tax would not lead to the proceedings under Section 276 of the Income Tax Act. Facts- At the relevant point in time, the petitioner while filing his returns u/s. 139 of the Act, claimed certain deductions under Chapter VI-A and in particular, deductions under the heads of Long Term Capital Gain/Short Term Capital Loss. Long after the said deductions, sometime aroun...