Penalty u/s 271(1)(c)
CHIRAG ZALA
(Querist) 24 May 2010
This query is : Resolved
If computer software has done mistake in calculation of income from capital gain , is it fare to levy penalty u/s 271(1)(c)?
The matter happened such that there was two agricultural land having different Revenue Survey No. and while in finding out the Indexation cost of both agri.land , computer software has done index cost of one agri.land correctly and while for second agri.land , it has taken index cost of second agri.land together with first agri.land index cost, thereby index cost of second agri.land increased by first index cost of agri.land.
And assessing officer has arrived on decision that assessee has provide inaccurate data and therefore penalty should be levy on such transaction.
So, my question is that Is it fare enough when explanation given to assessing officer and all particular data provided to the computer to find out the income from capital gain and just because of computer software mistake, assessee suffers from levy penalty???????????
Vineet
(Expert) 25 May 2010
You have a fair chance to escape penalty u/s 271(1)(c) as it appears to be a bona fide mistake in the given circumstances. However, your contentions need to be substantiated with the evidences such as mention of correct cost of each land in the return and it being only a computational mistake.
soumitra basu
(Expert) 31 May 2010
You have the fair chance to win in appeal if you can prove that it is a computer mistake and you have co operated with the department at the time of assessment in all respect. In this connection the following judgment is important - Reliance Petroproducts P Ltd 322 ITR 158 (SC)
