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2019 (2) TMI 802 - ITAT DELHIPenalty u/s. 271(1)(c) - AO has treated the income declared under capital gain as income from business which has resulted in the variation of amounts between returned and assessed income - Held that:- We find that assessment in this case was completed u/s. 143(3) of the Act on 13.12.2011 wherein the AO treated the income arising out of sale of land declared by the assessee under the head capital gain as income from business. This change of head resulted in the levy of tax at higher rate on the appellant. CIT(A) has rightly observed that the basic premise i.e. the impugned income is to be taxed as business income and not as capital gain does not survive. Therefore, there is no ground for levy of penalty u/s. 271(1)(c) of the Act. Hence, Ld. CIT(A) correctly deleted the penalty of ₹ 6,35,91,247/-, which does not need any interference on our part, therefore, we uphold the action of the Ld. CIT(A) on the issue in dispute and reject the ground raised by the Revenue. - decided against revenue.
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