Penalty under section 271(1)(c)--Concealment --Wrong claim made under section 10(33)

Assessee declared long-term capital gains inclusive of loss incurred on sale of US-64 units and claimed the setting of loss against other source of income under the same head arising out of sale of the said units to be exempted under section 10(33). Assessing officer disallowed the loss on the ground that where income from particular source was exempt from tax, the loss from such source could not be set off from another source under the same head of income. Assessing officer initiated penalty proceedings and imposed penalty under section 271(1)(c). The Commissioner (Appeals) upheld the order of assessing officer levying penalty. The Tribunal held that wrong claim made by assessee is not filing of inaccurate particulars or concealment of income and deleted penalty.

Held : The Tribunal was right in holding that assessee had in its return of income filed a note with its computation of income disclosing all details about sale of US-64 Units, loss and resultant carry forward and thus, there was no furnishing of inaccurate particulars or concealment of income and consequently Tribunal was justified in cancelling penalty under section 271(1)(c).