Penalty U/S 271(1)(c) Of Income Tax Act Not Applicable If Assessee Voluntary Discloses Bona Fide Mistake: Chhattisgarh High Court

The Chhattisgarh High Court held that penalty under Section 271(1)(c) of the Income Tax Act is not applicable if the assessee voluntarily discloses a bona fide mistake. The court found that the assessee had made an inadvertent error in their tax return and had voluntarily come forward to rectify it before being detected by the tax authorities. The High Court ruled that such a voluntary disclosure of a genuine mistake, made in good faith, does not warrant the imposition of penalty. This decision encourages taxpayers to come forward with corrections to unintentional errors without the fear of penal consequences.