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2016 (12) TMI 1599 - AT - Income TaxPenalty u/s 271(1)(c) - capital gain addition - JDA agreement - AO had imposed penalty treating the whole amount of sale consideration to be received by assessee as accruing during the year - Held that:- The Hon’ble Punjab & Harayana High Court in the case of C.S. Atwal Vs. CIT, Ludhiana [2015 (7) TMI 878 - PUNJAB & HARYANA HIGH COURT] had deleted the similar addition confirmed by the Hon’ble ITAT and has held that capital gain under these circumstances can be worked out only on the basis of sale consideration received by assessee JDA agreement was not completed and assessee had not received the balance payments and had also not received the two flats as promised in the agreement. The ld. CIT(A) has also held that the belief of the assessee that the capital gains on which he had to pay tax has to be computed only on the basis of the amount which he had actually received, cannot be considered to be totally unreasonable. It is undisputed fact that in the present case the assessee had declared capital gains on proportionate basis and therefore, cannot be said to have furnished wrong particulars of income or concealment of income. Appeal filed by the Revenue is dismissed.
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