ITAT adjudicated a tax penalty case involving property sales....

ITAT adjudicated a tax penalty case involving property sales. The assessee declared a turnover of Rs. 22.34 crore and income of Rs. 7,53,35,452 for the assessment year. Two flat sales initially made in F.Y. 2009-10 were subsequently cancelled, with the assessee disclosing the original transaction and tax liability. The tribunal found the assessee's actions were based on reasonable cause, invoking Section 273B to preclude penalty under Section 271B. Considering the circumstances of increased property value and transparent tax reporting, the ITAT ruled no penalty was leviable, thereby allowing the assessee's appeal and providing relief from punitive taxation.

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