INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Leviability--Difference of opinion between assessee and AO - -

Assessee sold certain land and declared long-term capital gain on sale thereof. AO held that such income should have been offered as 'Business income', instead of long-term capital gains and accordingly imposed penalty under section 271(1)(c). Held: It was a case of difference of opinion between the assessee and AO on the facts already disclosed by the assessee. Merely because AO treated the amount of income already offered differently from the one portrayed by the assessee, cannot be a cause for imposing penalty under section 271(1)(c).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08

INCOME TAX ACT, 1961

Section 271(1)(c)

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