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2014 (10) TMI 291 - ITAT HYDERABADPenalty u/s 271(1)(c) – Inaccurate particulars furnished or not – Bonafide belief - Held that:- There is a bonafide claim made by assessee that sale of agricultural lands does not yield any taxable income by virtue of provisions of section 2(14) – relying upon Raghotham Reddy vs. ITO [1987 (10) TMI 47 - ANDHRA PRADESH High Court] - the profit or gain resulting from sale of agricultural land is a revenue derived from land i.e., agricultural income within the meaning of clause (1) in section 2 of the I.T. Act - assessee was under bonaifde impression that gain resulting from sale of agricultural land was exempt from tax - It was only AO on interpretation of the information available considered that assessee is indulging in adventure in nature of trade – the agricultural land is registered as such in Revenue Records - There was payment of land revenue, leasing of land for agricultural purpose and also assessment under wealth tax returns exempting the asset for the purpose of wealth tax - assessee has bonafide belief in making the claim that gain arising out of sale of agricultural land is exempt from tax – thus, there is no scope for levy of any penalty u/s 271(1)(c) – Decided in favour of assessee.
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