2015 (10) TMI 251

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....on-resident Indian. For the assessment year under consideration assessee had filed her return of income on 31.07.2008 declaring income of Rs. 3,18,567 which included short term capital gain of Rs. 3,06,625 from sale of shares as well as sale of immovable property at Bhavya Anant Udeshi, Hyderabad. Hyderabad. During the course of assessment proceedings, it was noticed by the A.O., though, the assessee has declared sale consideration as per the sale deed at Rs. 1 lakh, however, for the purpose of stamp duty, the registering authority of the State Government had valued the property at Rs. 2,55,50,000. The A.O. therefore, invoking the provisions of section 50C of the Act, completed the assessment in the case of the assessee by computing capital....

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.... 271(1)(c) of the Act imposing penalty for an amount of Rs. 50,91,600 being 100% of the tax sought to be evaded. Being aggrieved of the penalty order, assessee preferred appeal before the Ld. CIT(A). The Ld. CIT(A) also confirmed the levy of penalty by endorsing the A.O's view that assessee has furnished inaccurate particulars of income. Being aggrieved, assessee is before us. 3. The learned A.R. submitted before us that there being no conclusive evidence before the A.O. to prove the fact that assessee has received any amount over and above the sale consideration mentioned in the sale deed imposition of penalty under section 271(1)(c) of the Act on the valuation made by the stamp valuation authority for the purpose of stamp duty cannot be ....

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.... capital gain. Therefore, to that extent, there is furnishing of inaccurate particulars of income. The learned D.R. further submitted that the computation of capital gain by applying the provisions of section 50C in the case of the assessee having been upheld by the ITAT, imposition of penalty under section 271(1)(c) is justified. 5. We have considered the submissions of the parties and perused the materials available on record. As Bhavya Anant Udeshi, Hyderabad. can be seen from the facts and materials on record, while the assessee computed capital gain on the basis of sale consideration mentioned in the registered sale deed, the A.O. computed the capital gain by invoking the provisions of section 50C of the Act as the registering authori....

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....er, in the present case as is evident from the materials on record, the assessee in the course of assessment proceeding has furnished all necessary and relevant documents relating to the transaction of the property in question including registered sale deed. The assessee has not suppressed any material fact from the notice of the A.O. In these circumstances, the imposition of penalty under section 271(1)(c) of the Act alleging furnishing of inaccurate particulars of income or concealment of income, in our view, is not appropriate. The ITAT, Mumbai Bench in the case of Renu Hingorani, Mumbai vs. ACIT, Range 19(3), Mumbai (supra) while considering identical nature of dispute, deleted the penalty under section 271(1)(c) of the Act by holding a....