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2012 (10) TMI 280 - AT - Income TaxPenalty u/s 271(1)(c) - profit on sale of land offered as capital gain instead of business income - assessee on realizing the mistake had suo moto offered the income as business income, taxed as same by AO without any change - Held that:- It is clear that the assessee had offered explanation by furnishing necessary details and also substantiated it. The explanation of the assessee was not found to be false by Revenue in view of the fact that the computation as submitted by assessee was accepted by Revenue. Thus, it is clear that no material was found by Revenue to hold that the explanation offered by assessee was false. Therefore, assessee’s case does not fall within the ambit of Part-A of Explanation. So far as Part-B is concerned, it is found that assessee offered an explanation and also substantiated it. Therefore, Part-B is also not applicable. In view of above, assessee’s case does not fall within the ambit of Explanation 1 to Sec. 271(1) (c) and no penalty can be levied by merely disbelieving explanation given by the assessee - Decided in favor of assessee
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