No penalty for not declaring STCG due to bonafide mistake/clerical error

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.

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