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Sec. 271(1)(c) of Income Tax Act, 1961 - Penalty - The assessee entered into an agreement with a property developer for development of residential housing society at his land. The value of the consideration for the assessee in the agreement was decided at Rs. 6 crores. The assessee during the year received two shop in a mall as consideration from developer against sale of one of the unit of the project sold. But the assessee failed to incorporate such sale proceed in the income tax return. The assessee during assessment proceeding submitted that the same was omitted to offer in the income tax return due to some mistake and agreed to pay due taxes on the same. Accordingly the AO calculated LTCG at Rs. 79,77,246/- and added the same to total income of the assessee. The AO further initiated the penalty proceeding for filing inaccurate particular and concealment of income. During the penalty proceeding the assessee submitted that he was in bona-fide belief that the capital gain should be offered once the project gets fully completed and possession given to the developer. Hence there was no any ill intention to escape taxes. The AO held that the assessee has furnished inaccurate particulars of income and imposed the penalty of Rs. 16,13,441/- being hundred percent of the amount of tax sought to be evaded. CIT(A) confirmed the order of AO. The ITAT in appeal held that “that there cannot be any penalty in the given facts and circumstances under the provisions of section 271(1)(c) of the Act for the reason that the assessee has not deliberately furnished inaccurate particular of income. Accordingly set aside the finding of the CIT (A) and direct the AO to delete the addition made by him”. Appeal of the assessee allowed.—KAUSHIKBHAI CHHOTALAL DALWADI vs. ITO. 26 ITCD Online 028 (ITAT-AHMEDABAD)