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2018 (8) TMI 1853 - HC - Income TaxPenalty u/s 271(1)(c) - characterization of income - assessee is an H.U.F. and who is partner in the partnership business - Income relates to valuation of trademark and goodwill - Tribunal held that the proportionate income falling at the hands of the assessee would be taxed as capital gain and not business income - HELD THAT:- The provisions of Section 45(3) of the Act clearly states that for the purposes of Section 48, the amount recorded in the books of accounts as the value of the capital assets shall be deemed to the full value of the consideration. In our understanding of the facts, the HUF proprietary concern could not have envisaged the value of the trademark/goodwill to be recorded by the partnership firm in its books of accounts. The assessee cannot be held liable for concealing any particulars of the its income. Moreover, the A.O. Has not taxed he income in the head of income as directed by the Tribunal but has taxed the same under a different head of income. On these facts, we do not find this to be a case for the levy of penalty u/s.271(1)(c) of the Act and therefore there is no error or infirmity in the findings of the ld. CIT (A). Appeal filed by the Revenue is dismissed
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