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2014 (4) TMI 1215 - AT - Income TaxPenalty proceedings u/s 271(1)(c) - Nature of land sold - assessee claimed that the land sold and subsequently purchased "along with development rights is agricultural land and is liable for capital gain tax - AO rejected the claim as the land in question at Mohamawadi is within 8 Kms. of Pune Municipal Corporation - LTCG OR STCG - Held that:- The assessee filed the return of income on 31st Dec., 2007 claiming the year of acquisition of the asset as 1999 instead of the correct year as 2004. The notice issued under s. 143(2) of the Act dt. 11th Sept., 2008 was issued and served on the assessee on 16th Sept., 2008 and the final order was passed on 30th Dec, 2009. Even though the period of holding of the asset sold was for less than 36 months and therefore the income does not fall within the long-term capital gain, we find the assessee never filed any revised return before the issue of notice under s. 143(2) Further, the assessee before the CIT(A) vide letter dt. 20th Jan., 2012 had stated that he had voluntarily accepted for the agreed addition in respect of deduction wrongly claimed by his consultant. Thus the asset purchased in the year 2004 has been taken as 1999 to treat the profit on sale of the asset as long-term capital gain and assessee has neither filed any revised return nor brought the mistake to the notice of the AO before the same was detected. We set aside the order of the CIT(A) and confirm the penalty levied by the AO. Grounds raised by the Revenue are accordingly allowed.
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