INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Furnishing of inaccurate particulars of income - Bona fide mistake -

While framing the assessment under section 148 read with section 143(3), AO disallowed the claim of deduction under section 10B and consequently, initiated penalty under section 271(1)(c) for furnishing inaccurate particulars of income. Assessee submitted that deduction was claimed on account of bona fide mistake, as the same was withdrawn by the Finance Act, 2007 with effect from 1-4-2008 only, due to amendment in law. Held: There was force in the contention of assessee that due to bona fide mistake claim was made, as assessee was allowed deduction in earlier years and it was only with effect from 1-4-2008, deduction was withdrawn due to amendment in law. Thus, following the judgment of Apex Court in Price Waterhouse Coopers Pvt. Ltd. v. CIT (2012) 348 ITR 306 (SC): 2012 TaxPub(DT) 2967 (SC), AO was directed to delete the penalty.

Relied:Price Waterhouse Coopers Pvt. Ltd. v. CIT (2012) 348 ITR 306 (SC): 2012 TaxPub(DT) 2967 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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