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2015 (2) TMI 285 - AT - Income TaxPenalty u/s 271(1)(c) - profits from sale and purchase of agricultural land shown as capital gain instead of profits and gains from business - CIT(A) deleted levy - Held that:- If complete details of transaction has been revealed by the assessee in its return of income, then penalty u/s 271(1)(c) of the Act will not be imposable just because the claims of the assessee are found to be legally not allowable. In the instant case, the assessee furnished all particulars of purchase and sale of agricultural land which brought profit to the assessee. During the quantum proceedings, the AO treated the profit as business profit instead of capital gains as claimed by the assessee, therefore, by any stretch of imagination, it cannot be held that the assessee has furnished inaccurate particulars of its income or has concealed particulars of its income. We further hold that merely because the assessee proposed the impugned profits from sale and purchase of agricultural land as capital gain but the AO assessed the same under the head of profits and gains from business and profession, in this situation, penalty u/s 271(1)(c) of the Act is not imposable as in any case, it cannot be said that the assessee has furnished inaccurate particulars of its income or has concealed particulars of its income before the AO during quantum proceedings. Thus, the CIT(A) was right in deleting the penalty imposed by the AO and we are unable to see any valid reason to interfere with the impugned order of the CIT(A) in this regard. - Decided in favour of assessee.
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