No Penalty u/s 271(1)(c) for Voluntarily Disclosed Bona Fide Mistake by Taxpayer: Chhattisgarh HC

The Chhattisgarh High Court reiterated that no penalty under Section 271(1)(c) of the Income Tax Act should be imposed if a taxpayer voluntarily discloses a bona fide mistake in their tax return. The court upheld its earlier stance, stating that when an assessee admits to an inadvertent error and takes proactive steps to rectify it before detection by the tax authorities, it demonstrates a lack of intent to evade tax. This ruling encourages taxpayers to come forward with corrections to genuine mistakes without fear of penal consequences, promoting transparency and reducing unnecessary litigation.