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2017 (11) TMI 1902 - ITAT AMRITSARPenalty u/s 271(1)(c) - assessee surrendered the additional income - assessee omitted information regarding cash deposits - HELD THAT:- Assessee is rustic villager and did not know about the intricacies of the law, therefore, surrendered the income, we feel that the Id. Counsel has bonafide correct belief, however we feel it appropriate to deal the instant case under the parameters of income tax laws and law settled by apex court in MAK DATA P. LTD. VERSUS COMMISSIONER OF INCOME TAX-II [2013 (11) TMI 14 - SUPREME COURT]. Assessee being an un- educated and rustic villager on bonafide beliefs, kept the earnest money in his bank account and waited for maturity of deal and did not show the earnest money in his Income Tax Return, and was unable to demonstrate his transactions of ₹ 22,50,000/- to the Revenue Authorities, however by filing an application u/s 29 of the I.T. Rules tried to substantiate his claim in respect of receiving earnest money of ₹ 22,50,000. No doubt the submissions of the assessee to the effect that the assessee had surrendered the amount in order to buy peace and subject to no penal action lacks merits. Because the Assessee sold his property by making unregistered Agreement to sell and received part payment only and somehow, the said deal could not be finalized , therefore he under the impression that he will return the earnest money to the buyer therefore has not shown the said amount in his income, although the said circumstances have been explained to the revenue authorities however did not yield any result , therefore we are of Asst. Year:2009-10 the considered view that the penalty proceedings are quasi-criminal in nature cannot be fastened only on the probabilities and from the facts as emerged that the assessee has not concealed the particulars of income, hence, we order for deletion of penalty. - Decided in favour of assessee.
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