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2022 (1) TMI 534 - AT - Income TaxPenalty u/s 271(1)(c) - whether there is concealment of income or the assessee filed inaccurate particulars of the income? - HELD THAT:- In this particular case of the assessee, the Revenue is not invoked the proper limb of Section 271(1)(c) i.e. whether there is concealment of income or the assessee filed inaccurate particulars of the income. It is not at all mentioned by the Revenue authorities in the penalty notice dated 10.09.2013 relating to under which penalty limb of Section 274 r.w.s. 271(1)(c), the assessee's case will fall. Revenue authorities while imposing penalty as well as invoking the penalty provisions cannot be vague in their invocation which is beyond the scope of Income Tax Statute. Besides that, the principles of natural justice were not at all followed by the Revenue in assessee's case. On merit also land in question does not fall within the ambit of "capital asset", as defined u/s. 2(14) and therefore, capital gain arising on sale of such lands is exempt, this submission of the Ld. AR is correct and as per law. Therefore, the penalty does not sustain. Incorrect provisions of the penalty - Penalty u/s 271(1)(c) cannot be levied in this assessment year as this is the search year in view of the provisions of Section 271AAA as the search took place on 21.09.2010, the reliance of the Ld. AR on the decision of the Tribunal in case of Dr. Naman A. Shastri [2015 (11) TMI 109 - ITAT AHMEDABAD] is apt in the present case. Revenue has invoked incorrect provisions of the penalty and that cannot be said the fault of the assessee. Therefore, penalty does not sustain.
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