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2017 (8) TMI 1183 - AT - Income TaxLevy of penalty u/s 271(1)(c) - long term capital gains - assessee did not disclosed the income treating the same as loss - AO made the additions applying section 50C / fair market value - Held that:- The assessee has actually sold the property for a total consideration of ₹ 29,43,996/- but as per circle rates as assessed by the stamp valuation officer the fair market value for the purpose of section 50C of the Act is at ₹ 62,58,629/-. Subsequently, the matter was referred to DVO and DVO estimated the value at ₹ 44.97 lakhs, and reduced the estimate substantially, which comes to the differential amount at 12,25,129/- as against the difference estimated by the AO on the basis of circle rates at ₹ 29,86,753/-. The drastic change in value itself indicates that the entire exercise on the basis of estimated figures. In such circumstances, we are of the view that, the assessee is not liable for penalty u/s 271(1)(c) of the Act for furnishing of inaccurate particulars of income or concealment of particulars of income. Respectfully, following Hon’ble Bombay High Court in the case of Fortune Hotels and Estates Pvt. Ltd. (2014 (10) TMI 783 - BOMBAY HIGH COURT), we delete the penalty and allow the appeal of the assessee.
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