TaxTMI 
TaxTMI 
2023 (7) TMI 1631
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.... The ld. AO has erred in levying penalty and ld. CIT(A) has erred in confirming the penalty u/s 271(1)(c) of the I.T. Act. 2. The appellant reserves the right to add, alter, amend or withdraw any grounds of appeal." 2. Brief facts of the case are that the assessee filed his return of income for A.Y. 2011-12 on 22/09/2011 declaring income of Rs. 5,29,550/-. Subsequently, the case of assessee was reopened by issuing notice under Section 148 of the Income Tax Act, 1961 (in short, the Act) on 06/02/2014. The case of assessee was reopened on the basis of information that the assessee had entered into property transaction and the capital gain earned on sale of such asset/property as escaped assessment. The assessment was completed und....
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.... tax sought to be evaded vide order dated 31/03/2017. 3. Aggrieved by the penalty, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee filed detailed written submission and relied on various case laws. The assessee in its submission submitted that addition in the quantum assessment was made under Section 50C which is a deeming provision which empowers the Assessing Officer to make the addition of difference of value declared and the deemed sale consideration as has been adopted by Stamp Valuation Authority for the purpose of registration of document. Such deeming fiction cannot be applied for levying penalty under Section 271(1)(c) of the Act. Addition was made only on account of difference of opinion abo....
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....on of transaction. Section 50C is deeming provision to tax the difference as capital gain where the consideration received as a result of transfer of capital asset, land or building or both is less than the value declared by assessee vis a vis the value adopted by Stamp Valuation Authority. No penalty is leviable on such addition added on the basis of deeming provision. The ld. AR of the assessee submits that on similar set off fact, Ahmedabad Tribunal in case of Kantibhai Mohanbhai Kheni Vs ACIT ITA No. 1831/Ahd/2014 dated 20/03/2017, deleted the similar penalty, thus, ground of appeal raised in the present appeal is squarely covered by the said order. The ld. AR of the assessee furnished the copy of decision of Tribunal. 6. On the othe....
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....xtracted below: "5. We have heard both the sides and perused the material on record. On the perusal of the of details it is observed that on the basis of the reference made to the valuation officer for valuation of property u/s 50C(2), the AO made an addition of Rs. 20130880/- u/s 50C of the act on the basis of valuation officer report, the assessing officer determined long term capital gain after reducing Rs. 67,58,003/- which the assessee has already disclosed as long term capital gain. On the analysis of the provisions of section 50C, we observed that section 50C is a deeming provision to tax the difference as capital gain where the consideration received as a result of transfer of capital assets, being land or building or both ....