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2017 (4) TMI 457 - HC - Income TaxPenalty under section 271(1)(c) - exigibility to capital gains tax - Transfer exigible to tax by reference to Section 2(47)(v) of the Income Tax Act, 1961 read with Section 53-A of the Transfer of Property Act, 1882 - JDA entered by assessee - Held that:- The matter is no longer res integra. In C.S.Atwal’s case [2015 (7) TMI 878 - PUNJAB & HARYANA HIGH COURT] concluded that Section 53A of 1882 Act, by incorporation, stood embodied in section 2(47)(v) of the Act and all the essential ingredients of Section 53A of 1882 Act were required to be fulfilled. In the absence of registration of JDA dated 25.02.2007 having been executed after 24.09.2001, the agreement does not fall under Section 53A of 1882 Act and consequently Section 2(47)(v) of the Act does not apply. In view of cancellation of JDA dated 25.02.2007, no further amount has been received and no action thereon has been taken. It was urged that as and when any amount is received capital gains tax shall be discharged thereon in accordance with law. In view of the aforesaid stand, while disposing of the appeals, we observe that the assessee appellants shall remain bound by their said stand. The issue of exigibility to capital gains tax having been decided in favour of the assessee, the question of exemption under Section 54F of the Act would not survive any longer and has been rendered academic. Thus as quantum proceedings have been adjudicated in favour of the assessee. Once that is so, no penalty under section 271(1)(c) of the Act would be exigible. - Decided in favour of assessee.
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