Wrongly disclosed income does not mean undisclosed income, penalty u/s 271(1)(c) cannot be levied.

Brief of the case:

New Delhi court held in PR. CIT Vs Control and Switch gear Contractors Ltd that if the assessee had disclosed the income in its return of income though wrongly disclosed it did not mean that the assessee had tried to hide its income so that wrongly disclosed income could not be considered as an undisclosed income and penalty u/s 271(1)( C) could not be levied.

Moreover as the assessee had consulted its tax advisor and acted accordingly so it meant that the intention of assesssee was not to hide the income so penalty u/s 271(1)( C) could not be levied

Facts of the case:

The assessee had given up its rights and received compensation, the Company has entered into a JV

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