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2015 (2) TMI 540 - AT - Income TaxPenalty u/s 27 1(1)(c) - disbelieving the agricultural holding - Held that:- AO himself has accepted the extent of land holding both in the immediately preceding year (AY 2007-08) and in the immediately succeeding year (AY 2009-10). Hence, the very basis on which the agricultural income was reduced in AY 2008-09 is proved to be wrong by the above said facts. Thus, it is seen that the agricultural income has been estimated at a lower figure in AY 2008-09 on the basis of mere presumption about the extent of land holding, which is proved to be wrong. The Assessing Officer has also failed to furnish the basis in adopting a round sum amount of ₹ 5.00 lakhs. Thus, the agricultural income determined by the Assessing Officer turns out to be a mere estimate. Under these set of facts, we are of the view that the assessee cannot be found fault with, with the charge of concealment of particulars of income. Accordingly, we set aside the order of Ld CIT(A) in AY 2008-09 and direct the assessing officer to delete the penalty levied u/s 271(1)(c) of the Act for that year. In AY 2009-10 the assessing officer has simply forced the assessee to scale down the agricultural income by making lower estimates. The AO has examined the extent of land holding and was also satisfied with the same. However, in one of the agricultural record, the area of cultivation was shown at a lower level and hence the assessing officer has considered the same to be a case of furnishing of inaccurate particulars of income. Thus, it is seen that there is contradiction in the stand of the assessing officer also. In any case, it is seen that the assessing officer has substituted the agricultural income declared by the assessee with another estimate only. In our view, such kind of substitution of income on estimated basis cannot be considered to be a case of concealment of particulars of income and hence the same would not give rise to any penalty u/s 271(1)(c) of the Act. - Decided in favour of assessee.
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