October 2022
S. 271(1)(c) – The Assessee had wrongly claimed a long-term capital loss in respect of a property which had been gifted by him to his son. Since the amount of capital loss had duly been disclosed in the computation of income and the Assessee had also accepted at the time of assessment proceedings it had considered gift made to son as a transfer by mistake, and there was no concealment of any material fact by the Assessee and thus, levy of penalty u/s 271(1)(c) was not justified.
33 Pawan Garg vs. Assistant Commissioner of Income-tax
[2022] 94 ITR(T) 159 (Chandigarh -Trib.)
ITA No.: 1475(CHD) of 2018
A.Y.: 2014-15
Date of order: 17th January, 2022
S. 271(1)(c) - The Assessee had wrongly claimed a long-term capital loss in respect of a property which had been gifted by him to his son. Since the amount of capital loss had duly been disclosed in the computation of income and the Assessee had also accepted at the time of assessment proceedings it had considered gift made to son as a transfer by mistake, and there was no concealment of any material fact by the Assessee and thus, levy of penalty u/s 271(1)(c) was not justified.
FACTS
The Assessee is a partner in a firm engaged in the dyeing and finishing of textile yarn. The return of income was filed declaring an income of Rs. 8,11,800. The Assessee had claimed Long Term Capital Loss at 20 per cent amounting to Rs. 7,14,554 in respect of a property gifted by him to his son Shri Akhilesh Garg on 20th July, 2013. The Assessee was asked by the Assessing Officer to explain as to why this loss, which had wrongly been claimed, may not be disallowed. In response, the Assessee accepted that there was a mistake due to some typographical error and, therefore, the amount was added to the income of the Assessee. Subsequently, the impugned penalty was imposed on the said addition.
Aggrieved, the Assesse
