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2016 (5) TMI 1163 - AT - Income TaxLevy penalty u/s 271(1)(c) - undisclosed capital gain - assessee has sold the property during the financial year 2007-08 and computed the capital gain for the assessment year 2009-10 for which no satisfactory explanations has been offered - Held that:-AO dealing with the matter is to consider whether the explanations offered by the assessee or the person as the case may be is reasonable and as regards the reason was on account of reasonable cause. In the present case on hand, on perusal of the available records, we find that the assessee has voluntarily disclosed the capital gains for the assessment year 2009-10 on transfer of immovable property. Whether the particular capital gain is taxable for the assessment year 2008-09 or 2009-10 is a finding of fact which needs to be examined with reference to the facts available on record. The assessee proved that he had handed over the possession of the property in the financial year 2009-10. It is also undisputed fact that he had disclosed the capital gain for the A.Y. 2009-10. Penalty u/s 271(1)(c) of the Act could be imposed when all the necessary facts were not disclosed by the assessee before the assessing officer. We further noticed that when the facts was brought to the notice of the assessee, the assessee has accepted the proposal mooted by the A.O. and offered the capital gain in respect of 3 sale deeds for the assessment year 2008- 09. Therefore, the A.O. was not correct in coming to the conclusion that the assessee has concealed the particulars of income for the assessment year 2008-09. In the present case on hand, the assessee has disclosed necessary facts, before the A.O. before the assessment was reopened for the impugned assessment year. Therefore, we are of the view that it is not a fit case for levy of penalty for concealment of income or furnishing inaccurate particulars of income. Therefore, we direct the A.O. to delete the penalty levied u/s 271(1)(c) of the Act. - Decided in favour of assessee
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