Case Law Details
Briefly stated the facts of this case are the assessee filed the return of income qua assessment year 2006-07 declaring total income at Rs.75,46,850/- and the assessment was completed under section 143 (3) of the Income-tax Act, 1961 (for short ‘the Act’) vide order dated 29.12.2008 at Rs.94,01,360/- and penalty proceedings u/s 271(1)(c) of the Act were ordered to be initiated for the reason that the assessee has not declared short-term capital gain (STT not paid) amounting to Rs.18,54,504/- which was subsequently offered for taxation.
Assessee during the penalty proceedings taken the plea that due to bonafide mistake, he could not declared short term capital gain of Rs.18,54,504/- regarding which affidavit has been filed. However, AO, by invoking Explanation 1 to section 271(1)(c) of the Act, has not accepted the plea of the assessee and imposed the penalty.
Assessee challenged the penalty order by way of an appeal before the ld. CIT (A) who has affirmed the penalty order by dismissing the appeal. Feeling aggrieved, the assessee has come up before the Tribunal by challenging the penalty order passed u/s 271(1)(c) of the Act.
Undisputedly, the assessee has shown short term capital gain in his return of income as Rs.37,48,819/- instead of Rs.56,07,323/-; that the assessee while filing his return of income for the AY 2006-07 has not declared short term capital gain to the tune of Rs.18,54,504/- which was subsequently offered for taxation; that the assessee has candidly admitted that the amount of short term capital gain to the tune of Rs.18,54,504/- has not been declared because of the fact that sale price of the mutual funds attracting short term capital gain was wrongly booked up and stated to be a bonafide mistake.
In the backdrop of the aforesaid facts and circumstances of the case, now the question arises for determination in this case is:-
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