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2015 (12) TMI 134 - AT - Income TaxPenalty u/s 271(1)(c) - evasion of tax on sale of property - Held that:- the assessee has offered the surplus out of OTS to Bank in the books of the company/firm, which is more than the sale under dispute, to tax and also offered to tax the interest income. It shows that there is no intention to conceal the income. The ld. AR also insisting that the sale transaction does not attract income tax and He was under influence of his financial advisers that the sale of property for the purpose of bank settlement is exempt from tax. It shows that assessee was under bonafide belief that the transaction did not attract capital gains tax. It gives impression that the assessee has no intention to conceal any income. Therefore, this is not a fit case to impose penalty u/s 271(1)(c). Accordingly, we cancel the penalty levied by AO u/s 271(1)(c) and allow the appeal of assessee. - Decided in favour of assessee.
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