Ambalal Sarabhai Enterprises Ltd. v. Dy. CIT

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The Tax PublishersITA Nos. 1859 & 1860 (Ahd) of 2016 2017 TaxPub(DT) 1255 (Ahd-Trib) Ambalal Sarabhai Enterprises Ltd. v. Dy. CIT INCOME TAX ACT, 1961 --Penalty under section 271(1)(c)--ConcealmentBoth assessee as well as the revenue faulted in evaluating the land----Since both assessee as well as the Revenue had been found to be at equal fault in evaluating the cost of acquisition of land sold, assessee only could not be penalized for such an act and conduct of valuation of the property by terming it as an instance of either concealment of income or furnishing of inaccurate particulars of income under section 271(1)(c).--Assessee sold its land and submitted a government-approved valuer's report for cost of acquisition of the said land sold. AO termed the same as not correct and imposed penalty by reducing cost of acquisition rate on the ground that it did not indicate the plot of land concern as commercial in nature in specific wordings. *Held:* There was no dispute that AO reduced valuation by citing sale instances of the relevant era to drastically reduce the assessee's rate. The fact, however, remains that he had not considered even a single sale deed pertaining to any commercial or industrial plot as was the one involved in the instant lis. It was thus crystal clear that both the assessee as well as the Revenue had been found to be at equal fault in evaluating the land in question. Thus, assessee only could not be penalized for such an act and conduct of valuation of the property in these peculiar facts and circumstances by terming it as an instance of either concealment of income or furnishing of inaccurate particulars of income under section 271(1)(c). Income Tax Act, 1961 Section 271(1)(c) *REFERRED :* FAVOUR : In assessee's favour. A.Y. : 2008-09 & 2009-10 IN THE ITAT, AHMEDABAD BENCH N.K. BILLAIYA, A.M. & S.S. GODARA, J.M. Ambalal Sarabhai Enterprises Ltd. v. Dy. CIT ITA Nos. 1859 & 1860/Ahd/2016 5 May, 2017 Assessee by: M. K. Patel, A.R. Revenue by: Jagadish, CIT D.R. ORDER SUBSCRIBE FOR FULL CONTENT

The Tax PublishersITA Nos. 1859 & 1860 (Ahd) of 2016
2017 TaxPub(DT) 1255 (Ahd-Trib)

Ambalal Sarabhai Enterprises Ltd. v. Dy. CIT

INCOME TAX ACT, 1961

--Penalty under section 271(1)(c)--ConcealmentBoth assessee as well as the revenue faulted in evaluating the land----Since both assessee as well as the Revenue had been found to be at equal fault in evaluating the cost of acquisition of land sold, assessee only could not be penalized for such an act and conduct of valuation of the property by terming it as an instance of either concealment of income or furnishing of inaccurate particulars of income under section 271(1)(c).--Assessee sold its land and submitted a government-approved valuer's report for cost of acquisition of the said land sold. AO termed the same as not correct and imposed penalty by reducing cost of acquisition rate on the ground that it did not indicate the plot of land concern as commercial in nature in specific wordings. Held: There was no dispute that AO reduced valuation by citing sale instances of the relevant era to drastically reduce the assessee's rate. The fact, however, remains that he had not considered even a single sale deed pertaining to any commercial or industrial plot as was the one involved in the instant lis. It was thus crystal clear that both the assessee as well as the Revenue had been found to be at equal fault in evaluating the land in question. Thus, assessee only could not be penalized for such an act and conduct of valuation of the property in these peculiar facts and circumstances by terming it as an instance of either concealment of income or furnishing of inaccurate particulars of income under section 271(1)(c).

Income Tax Act, 1961 Section 271(1)(c)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09 & 2009-10

IN THE ITAT, AHMEDABAD BENCH

N.K. BILLAIYA, A.M. & S.S. GODARA, J.M.

Ambalal Sarabhai Enterprises Ltd. v. Dy. CIT

ITA Nos. 1859 & 1860/Ahd/2016

5 May, 2017

Assessee by: M. K. Patel, A.R.

Revenue by: Jagadish, CIT D.R.

ORDER