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2013 (11) TMI 1 - AT - Income TaxPenalty u/s 271(1)(C) - Suppression of long term capital gains - Inaccurate particulars of income furnished - Held that:- After taking into account the cost inflation index for the year 1991-92 & 1996-97, the assessee has declared income from long term capital gain at ₹ 1,14,96,713/-. The Assessing Officer perused the registered deeds in respect of these properties purchased & sold and found that the assessee's share in these properties was 1/4th and the total cost of acquisition of the assessee should have been 2,80,312/4=70,078/-. It was also noticed that the assessee has purchased this property on 29.05.1998 whereas while computing capital gain, it has been mentioned to be purchased in the year 1991-92 and thus has computed capital gain by taking the cost inflation index. These discrepancies were pointed out to the assessee by the Assessing Officer but assessee did not tender any explanation in this regard and he himself admitted in the penalty proceeding that overstatement of cost of acquisition (Rs. 11,07,453/- instead of ₹ 5,06,604/-) of the land sold during the relevant year was a mistake and was not done with a mala fide intention to evade tax. Assessing Officer imposed the penalty after adopting the prescribed procedure under the law @ 300% and the same was confirmed by learned First Appellate Authority. Explanation filed by the assessee state that the overstatement of cost of acquisition of the land sold during the relevant year was the mistake of his accountant - Therefore, penalty @ 300% is very much on higher side on account of mistake committed by the assessee's accountant - The assessee has not produced any evidence supporting the mistake of his accountant - assessee has filed inaccurate particular of income to evade the tax due and has also admitted before the Assessing Officer that overstatement of cost of acquisition of the land sold during the relevant year was a mistake of his accountant - Penalty reduced to 100% - Decided partly in favour of assessee.
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