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2017 (8) TMI 1581 - HC - Income TaxPenalty u//s 271AAA - accounting treatment of the transaction of the JV vs sale of land whereas the assessee treated the same as development agreement / JV - ITAT deleted the penalty levy - HELD THAT:- Assessee treated this transaction as a JV/ Development agreement on the basis of registered development agreement which was duly accepted by the Stamp Duty Authorities/ JDA and other Govt. Deptt. The AO treated it sales of the land by interpreting the certain clauses of Development Agreement. During the assessment stage, no show cause notice was given to the assessee. However, at the penalty proceeding stage, the assessee submitted point to point explanation over the clauses of the Development Agreement which had not been controverted by the AO in penalty order. Therefore, the assessee’s treatment as to land transaction as joint venture / development agreement was bona fide. The Development Agreement is dated 19-03- 2008. Therefore, it is not understandable on what basis it can be treated as sales for A.Y.2011-12. Looking into all the facts and circumstances of the case, we concur with the findings of the ld. CIT(A) on the issue in question. Thus the appeal filed by the Revenue is dismissed.
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