The Tax Publishers2020 TaxPub(DT) 5284 (Sur-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c) Section 80-IB(10)

Assessee had disclosed 'on-money' amount as business receipt and details of purchasers of flats were provided in the sale deed. Revenue had no estopple to call information from purchasers about 'On-money' paid by them, which however, had not been taken by AO. In these circumstances 'on-money' received on account of sale of flats was a part of business income only and could not be taxed as income from other sources and once disallowance was deleted, there was no scope for levy of penalty under section 271(1)(c).

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Leviability - Deletion of disallowance of section 80-IB(10) deduction forming subject-matter of levy of penalty

During survey certain incriminating material in the form of loose papers containing details of 'on-money' received by assessee on account of sale of plots, were recovered. AO taxed said on-money as 'Income from other sources' and accordingly denied deduction under section 80-IB(10) on such 'on-money'. As regards said disallowance, AO levied penalty under section 271(1)(c). Held: Assessee had disclosed 'on-money' amount as business receipt and details of purchasers of flats were provided in the sale deed. Revenue had no estopple to call information from purchasers about 'On-money' paid by them, which, however, had not been taken by AO. In these circumstances 'on-money' received on account of sale of flats was a part of business income only and could not be taxed as income from other sources and once disallowance was deleted, there was no scope for levy of penalty under section 271(1)(c).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11



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