TaxTMI 
TaxTMI 
2016 (9) TMI 1462
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.... the CIT(A) has also confirmed the same. Referring to the penalty order, the learned counsel for the assessee submitted that the assessee claimed exemption under Section 54/54F in respect of a capital gain arising on the sale of the land at Injambakkam. It is not in dispute that the assessee has furnished all the details of transaction for sale of 10.03 grounds on 06.12.2010 for Rs. 4,00,00,000/-. In fact, the assessee acquired this property by means of a registered settlement deed from his father Shri P.V.Devakumaran on 19.11.2010. The assessing officer disallowed the claim of the assessee under Section 54/54F while computing the capital gain in the assessment proceeding. During the course of penalty proceeding, the assessing officer obser....
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.... land and claimed exemption under Section 54/54F. If the assessing officer find that the assessee is not eligible for exemption under section 54/54F, according to the learned counsel, it does not mean that the assessee has furnished the inaccurate particulars of his income. The gain arose to the assessee on transfer of capital asset is available before the assessing officer. Therefore, it is for the assessing officer to examine whether the assessee is eligible for exemption under Section 54/54F of the Act. After examining the claim of the assessee, if the assessing officer finds that the assessee is not eligible for deduction under Section 54/54F of the Act in respect of investment made out of the sale proceeds of the capital asset, it does....
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....54/54F of the Act. The assessing officer found that what was purchased by the assessee is not a residential house property, it is an agricultural land. The assessing officer on verification found that there was a well for irrigation together with a room with asbestos roof. Referring to the property tax said to be paid by the assessee, the learned department representative submitted that the property tax was paid for the super structure and there was no building in the nature of the residential house. Therefore, the assessing officer found that the assessee has furnished inaccurate particulars for the purpose of claiming deduction under Section 54/54F. Accordingly, the assessing officer levied penalty under Section 271(1)(c) of the Act. The ....
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....efully gone through the provisions of Section 271(1)(c) of the Act. Section 271(1)(c) in categorical terms says that the Assessing Officer may levy penalty if he is satisfied that the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income. In the case before us, the assessee has furnished all the details of the transaction of the sale of the property. In other words, the sale of the property for Rs. 4 crores was disclosed before the assessing officer. The assessee has also computed the capital gain and disclosed the capital gain before the assessing officer. The assessee claims exemption under Section 54/54F in respect of the investment made by him in another landed property. The assessee cla....
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....ites (supra). The Madras High Court after referring to the Apex Court judgment in Rajasthan Spinning and Weaving Mills found that the conditions stated in 271(1)(c) must exist for levying penalty. 9. In view of this judgment of the Apex Court and Madras High Court, even if it is considered that the claim made by the assessee under Section 54/54F is incorrect, it would not tantamount to furnishing of inaccurate particulars of income. Penalty can be levied only in respect of concealing the particulars of income or furnishing inaccurate particulars. Making a claim before the assessing officer under the statutory provisions cannot be considered by any stretch of imagination that the assessee has concealed any part of the income or furnished in....