Revenue's Appeal Dismissed: No Penalty for Bona Fide Reliance on Gram Panchayat Certificate for Tax Exemption.

The HC dismissed the revenue's appeal under s. 260A of the IT Act, 1961, upholding the Tribunal's decision to cancel the penalty imposed under s. 271(1)(c) for the assessment year 2004-05. The Tribunal agreed with the CIT(A) that the assessee's reliance on a Gram Panchayat certificate for capital gains tax exemption was bona fide, with no intentional income concealment. The Tribunal found no concealment or inaccurate particulars, and no substantial question of law arose, leading to the dismissal of the appeal.

---

---

Issues involved: Appeal u/s 260A of the Income Tax Act, 1961 regarding cancellation of penalty u/s 271(1)(c) for assessment year 2004-05.

Summary:
1. The appellant revenue challenged the confirmation of penalty cancellation by the CIT(A) u/s 271(1)(c) regarding the sale of agricultural land exempted from capital gains tax.

2. The Commissioner (Appeals) found the assessee's belief in the exemption based on a certificate from the Gram Panchayat to be bonafide, leading to the revised return and tax payment. The penalty was set aside due to no intentional concealment of income.

3. The revenue contended that the assessee declared capital gains only after Department inquiries, but the Tribunal upheld the penalty deletion based on existing record particulars.

4. The Tribunal noted conflicting views on the land's distance from municipal limits, with the assessee relying on the Gram Panchayat certificate. It found no concealment or inaccurate particulars by the assessee.

5. The Tribunal concurred with the Commissioner (Appeals) that no concealment or inaccurate particulars were found, and no question of law arose for interference.

6. The Tribunal's order was upheld as no infirmity was found, and no substantial question of law arose for consideration. The appeal was dismissed.

---