No Penalty for Wrong Claim in ITR : ITAT

Penalty for Wrong Claim in ITR ?

Assessee had wrongly claimed long-term capital loss in respect of a property which had been gifted by him to his son

This amount of capital loss has been duly mentioned in the computation of income. Therefore, apparently, we find that there is no concealment of any material fact by the assessee. At best, it can be said that the claim made by the assessee with respect to the Long Term Capital Loss was an incorrect claim or a wrong claim but it was not a false claim by any measure inasmuch as there was only a mistake in the legal sense that the gift made by the assessee to the son was considered as a transfer in the computation of income and the resultant figure was shown as a capital loss. It is also a fact on record that the assessee had accepted the same at the time of assessment proceedings.

 Levy of penalty under section 271(1)(c) was not justified