Case Law Details
Brief of the case:
ITAT New Delhi held in Simran Singh Gambhir Vs DDIT International Taxation that if the assessee had disclosed the income by mistake under wrong head of income and that mistake was bonafide then the same could not be treated as an undisclosed income and penalty u/s 271(1)(c) could not be levied.
Penalty u/s 271(1)(c) could only be levied if the assessee had not disclosed the income. In this case as the assessee had disclosed his income so penalty penalty u/s 271(1)(c) could not be levied, as concluded by ITAT new delhi.
Facts of the case:
The assessee had invested Rs 2 crore on 10-08-2004 under the national Housing Bonds and received Rs 2,32,86,842/- on maturity So he had shown the income of Rs 32,86,842/- under income from Long term Capital gain on sale of National housing Bonds. But AO on the other hand treated the above income as an interest income and treated under head income from other sources because he was of the view that the National Housing Bonds while giving interest, had deducted the TDS on the interest income and the assessee had claimed the credit of the same. So the same should be treated under head income from other sources and levied penalty 271(1)( c) considering the consealed income. The assessee then went into appeal.
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