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2015 (8) TMI 217 - AT - Income TaxLevy of penalty u/s 271(1) in relation to disallowance of excess claim of interest deduction under section 24(b) - Held that:- The appellant has taken a plausible view that she was eligible for interest deduction to the extent of ₹ 150,000/-. In our view, where the claim of the appellant is not under dispute and on quantum of deduction, the appellant has taken a plausible view, the AO can differ with the said view by way of disallowing the excess claim but the same cannot be a basis for levy of penalty. In result, the levy of penalty on account of excess claim of interest deduction u/s 24(b) of the Act is deleted. - Decided in favour of assessee. Levy of penalty in relation to short computation of long term capital gains - Adjustment on account of increase in sale consideration - Held that:- On reading of section 50C(1) of the Act and applying the same in context of subject facts, it is clear that it is a deeming provision where the value adopted for determining the stamp duty by the state Government authority is considered and replaced for the actual sale consideration accrued/received by the appellant. It is not the case of the Department that the appellant has received more than the value disclosed as sales consideration and has failed to disclose the same in her return of income. Where the actual sale consideration is less than the stamp duty value and by virtue of a deeming fiction, the latter is deemed by the AO to be the full value of consideration, it cannot be said that the appellant has concealed her income or furnished inaccurate particulars of income. All the primary facts have been duly disclosed by the appellant including DM Circle rate and the same have not been disputed. The fact that the assessee agreed to the addition is not conclusive proof that the sale consideration as per agreement was incorrect and wrong. We are therefore of the view that where the actual sale consideration is replaced by the sale consideration determined as per DM circle rate under the deeming provisions of section 50C, the same cannot be basis for levy of penalty under section 271(1)(C) of the Act. - Decided in favour of assessee. Adjustment on account of cost of acquisition/improvement - Held that:- cost of acquisition and cost of improvement has been reduced from ₹ 45,76,000 to ₹ 38,32,240 resulting in disallowance of cost by ₹ 7,43,760 for want of documentary evidence. As far as penalty is concerned, nothing has been brought on record as to whether the appellant has concealed any income or has furnished inaccurate particulars of income. On account of nonacceptance of the explanation of the assessee, the additions can be made but penalty under section 271(1)(c) cannot be levied. Penalty levied deleted - Decided in favour of assessee.
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