TMI Blog2016 (8) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... completed by a legal fiction. As decided in case of Madan Theatres Ltd. [2013 (6) TMI 96 - CALCUTTA HIGH COURT] he actual amount received was offered for taxation. It was only on the basis of the deemed consideration that the proceedings u/s. 271(1)(c) started. The revenue had failed to produce any iota of evidence that the assessee actually received one paise more than the amount shown to have been received by him. Thus, penalty order was liable to be set aside - Decided in favour of assessee - ITA. No: 2177/AHD/2013 - - - Dated:- 17-8-2016 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) Respondent by : Shri R.K. Gupta, Sr. D.R. ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. With ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been sustained by invoking the legal fiction u/s. 50C of the Act and, therefore, it is neither a case of concealment of income nor furnishing of inaccurate particulars of income. Therefore, no penalty can be levied. This explanation of the assessee did not find any favour with A.O. who proceeded by levying penalty of ₹ 39,715/-. 5. Aggrieved by this, the assessee carried the matter before the ld. CIT(A) but without any success. 6. Aggrieved by this, the assessee is before us. 7. We find that in its return of income, the assessee has shown capital gains on the basis of the sale consideration in the agreement. Invoking the provisions of Section 50C of the Act, the Stamp Duty Valuation was taken as the full value of consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments/ material before the AO. The AO has not doubted the genuineness of the documents/details furnished by the assessee. Only because the assessee agreed to the additions because of the deeming provisions it cannot be construed to be filing of inaccurate particulars on the part of the assessee. The assessee agreed to addition on the basis of valuation made by the stamp valuation authority cannot be a conclusive proof that the sale consideration as per the sale agreement is seemed to be incorrect and wrong. In view of these facts we are of the considered view that penalty cannot be levied on the basis of deeming provision. We accordingly delete the same. 10. Respectfully following the decision of the Hon ble High Court of Calcutta (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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