Allowing the assessee the Tribunal held that the explanation furnished by the assessee that by inadvertent mistake and human error, the capital gains derived from transfer of equity shares were not reported in the return of income filed for the relevant year was bona fide. It was possible when a transaction was settled by book adjustment that too on the direction of the High Court, to have an understanding that the particular transaction could not lead to tax. Moreover, even after computation of long-term capital gains from transfer of the equity shares the assessed income for the year resulted in a net loss. Thus, there was no deliberate attempt by the assessee to conceal particulars of income or evade payment of taxes. Liability could not be fastened under section 271(1)(c) of the Act. (AY. 2007-08)