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2019 (4) TMI 1508 - AT - Income TaxPenalty u/s 271(1)(c) - Sale of land - nature of land sold - assessee disclosed all the true facts relating to the land - alleged that assessee concealed the income or filed inaccurate particulars of income - HELD THAT:- It is an admitted fact that the assessee sold the agricultural land for a sum of ₹ 3 lacs. A.O. has taken market value/stamp duty value at ₹ 7 lacs and difference of ₹ 4 lacs was added to the income of the assessee under the provisions of clause (vii) of sub-section (2) of section 56. The said land was not an asset as per the definition provided u/s 2(14) which defines the capital asset. The provisions contained in sub-section (14) of section 2 of the Act clearly state that the agricultural land beyond the municipal area is not to be included in the definition of capital asset. In the present case, the A.O. added the notional value i.e. the difference in actual consideration and stamp duty value, in the hands of the assessee under the head ‘income from other sources’. In the instant case, the assessee disclosed all the true facts relating to the land and nothing was concealed, therefore, it may be a good case for making addition since there was difference between the actual consideration and the stamp duty value. It is well settled that the penalty proceedings are different and distinct from the assessment proceedings. In the present case, it cannot be said that the assessee had concealed income or furnished inaccurate particulars of his income. Considering the peculiar facts of this case, in my opinion, it is not a good case where penalty u/s 271(1)(c) of the Act may be levied - Decided in favour of assessee.
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