TaxTMI 
TaxTMI 
2015 (10) TMI 1715
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....1)(c) as there was sufficient circumstantial evidence to prove that the assessee has furnished inaccurate particulars of the transfer of property through colourable device and had concealed his true taxable income. 2. On the facts and in the circumstances of the case ld. CIT (A)(C), Jaipur has erred in deleting the penalty of Rs. 10,94,116/- imposed by the AO u/s 271(1)(c) when quantum addition had been confirmed by the CIT (A)(C) order dated 16.03.2011, against which appeal filed by the assessee is pending before ITAT. 2. In this case assessment for A.Y. 2006-07 was completed under section 143(3) of the IT Act on 22.12.2008 at a total income of Rs. 92,74,330/-. During the year under consideration assessee has transferred two properties v....
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....fore, under the facts and circumstances of the case and in view of the observations made by ld. CIT (A), the AO held that provisions of section 271(1)(c) of the IT Act are clearly applicable in the case of the assessee. Thus he made the assessee liable for penalty for concealment of income to the extent of Rs. 24,08,660/- by furnishing of inaccurate particulars of income. Accordingly he imposed penalty at Rs. 10,94,116/- under section 271(1)(c). 3. Being aggrieved by the order of the AO, assessee carried the matter before ld. CIT (A), who had allowed the appeal and deleted the penalty by observing as under :- " 4.4. I have carefully perused the quantum order, penalty order and the submissions of the AR and concur with the submissions of t....
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.... in the hands of the assessee, in our view is not justified. There is no provision under the IT Act that value of land owned by a company whose shares has been given to any person and in the hand of that person any capital gain can be assessed on the basis of land or office sold by the company. If any addition can be made that can be made on the basis of value of those shares or taking into consideration that the sale consideration shown by assessee is not correct, if there is any evidence. No such material was there before the AO that assessee has sold the share below market price and, therefore, in our considered view the basis on which the addition has been made by AO was not correct and, therefore, the ld. CIT (A) was also not correct i....