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2020 (8) TMI 98 - AT - Income TaxLevy of penalty u/s 271(1)(c) - assessee along with three other co-owners sold an inherited piece of land - AO invoking the provisions of Sec.50C of the Act, computed the amount of long term capital gains and made the addition - HELD THAT:- The assessee was under the bonafide belief that since he has not received any consideration during the relevant year, the sale is not complete and no profits accrued to him. The Revenue also could not place on record any evidence of actual receipt of any amount by the assessee during the year under consideration. The procedure of imposition of penalty u/s 271(1)(c) shall arise and only arise if there is any concealment of income or furnishing of inaccurate particulars of income. To determine these factors, the facts and circumstances are essential. In the present facts, when the charge is of the concealment of income, the facts does not suggest even on a remote basis that assessee has concealed his income rather the assessee has acted under bonafide belief and even the Revenue could not place on record any evidence of receipt of income regarding 1/4th share of the property by the assessee in the relevant year. Neither there is mens rea nor actus reus on the part of the assessee. We find that our view is fortified by the judgment of the Hon’ble Supreme Court in the case of K.C.Builders [2004 (1) TMI 7 - SUPREME COURT] - this is not a fit case for imposition of penalty u/s 271(1)(c) . Also see MOHAN LAL SHARMA. [2005 (4) TMI 22 - ALLAHABAD HIGH COURT] - Decided in favour of assessee.
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