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2019 (8) TMI 453 - AT - Income TaxPenalty u/sec. 271B - whether 271B levied by the Assessing Officer is correct or not ? - assessee has received advance on account of selling of immovable property as capital gains or business transaction - HELD THAT:- It is a fact that the assessee had entered into only a single transaction. It is also a fact that she has bonafide belief that the transaction entered into by her leads to capital gains and not business transaction. It is also a fact that during the year under consideration, the assessee entered into a single transaction though the amounts received by her attracts the provisions of section 44AB. Under these facts and circumstances of the case, we are of the opinion that the explanation given by the assessee is bonafide and also justified, no penalty can be levied u/sec. 271B of the Act. In a similar circumstances, the coordinate bench of the tribunal in the case of K.V.V. Prasad [2019 (6) TMI 1095 - ITAT VISAKHAPATNAM] who is also entered into agreement along with the assessee, held that no penalty can be levied u/sec. 271B. - Decided in favour of assessee.
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