Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 566 - AT - Income TaxPenalty u/s 271(1)(c) - assessment proceeding u/s 153A - short term capital gain on sale of immovable property was found ‘’during the course of search’’ OR not? - HELD THAT:- In the instant case, the assessee has not been found to have earned short term capital gain on sale of immovable property during the course of search. The assessee is an individual and derived income from salary and income from other sources i.e. interest income and he was not required to maintain the books of account. Nothing on record which suggests that any document/ material/ information was found during the course of search which remotely indicate that the assessee is recipient of short term capital gain on sale of immovable property. It is only during the course of proceedings u/s 153A that the AO noticed that the assessee is in receipt of salary income which has not been disclosed by the assessee in his return and the same was brought to tax. The dispute is not that short term capital gain earned by the assessee on sale of immovable property was not offered to tax by the assessee in his return of income which is an admitted position but question is whether such short term capital gain on sale of immovable property was found ‘’during the course of search’’ and obviously the answer to that is not in affirmative. None of the conditions specified in Explanation 5A to Section 271(1)( c) of the Act are attracted and therefore, levy of penalty is hereby directed to be deleted. Thus the appeal of the assessee is allowed.
|