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2014 (10) TMI 291 - AT - Income TaxPenalty u/s 271(1)(c) Inaccurate particulars furnished or not Bonafide belief - Held that:- There is a bonafide claim made by assessee that sale of agricultural lands does not yield any taxable income by virtue of provisions of section 2(14) relying upon Raghotham Reddy vs. ITO [1987 (10) TMI 47 - ANDHRA PRADESH High Court] - the profit or gain resulting from sale of agricultural land is a revenue derived from land i.e., agricultural income within the meaning of clause (1) in section 2 of the I.T. Act - assessee was under bonaifde impression that gain resulting from sale of agricultural land was exempt from tax - It was only AO on interpretation of the information available considered that assessee is indulging in adventure in nature of trade the agricultural land is registered as such in Revenue Records - There was payment of land revenue, leasing of land for agricultural purpose and also assessment under wealth tax returns exempting the asset for the purpose of wealth tax - assessee has bonafide belief in making the claim that gain arising out of sale of agricultural land is exempt from tax thus, there is no scope for levy of any penalty u/s 271(1)(c) Decided in favour of assessee.
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