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| The Tax Publishers2019 TaxPub(DT) 2925 (Ahd-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where assessee had demonstrated that the bona fide circumstances existed for non-inclusion of the capital gains because assessee was under mistaken belief that land sold being agricultural land was not susceptible to tax, imposition of penalty under section 271(1)(c) was unjustified.
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Penalty under section 271(1)(c) - Capital gains not offered to tax under bona fide belief that the land sold was agricultural land - Validity of -
Penalty under section 271(1)(c) was imposed on assessee on account of escapement of income towards long term capital gain. CIT(A), however, deleted the penalty. Held: Assessee was under bona fide belief that land was an agricultural land and was, therefore, exempted from capital gain tax. CIT(A) took note of the contention that the land belong to HUF and was not an individual property. Assessee submitted the calculation of the capital gains upfront before AO at the first opportunity and therefore, no evasive tactics were applied. CIT(A) rightly interpreted the fact situation and granted relief, thus, no interference was warranted.
REFERRED : Snita Transport (P.) Ltd. v. ACIT (2014) 42 Taxmann.com 54 (Gujarat) Renubala A. Miglani v. DCIT [ITA No. 1421, 1422, 1423/Ahd/2011 Assessment Year 2007-08, dt. 14-11-2014] ACIT v. Bhavinkumar M. Dagli [ITA Nos. 1179/Ahd/2011, dt. 30-6-2014] and Asstt. CIT v. Ashok Raj Nath (2012) 19 ITR 70 (Del) : 2012 TaxPub(DT) 2953 (Del-Trib)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, AHMEDABAD BENCH
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