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2022 (7) TMI 117 - AT - Income TaxPenalty u/s 271(1)(c) - allegation of concealment of income as assessee has not disclosed Capital Gain on sale of Land - assessee claimed that the penalty order has been passed beyond the statutory time limit mentioned in the Act - HELD THAT:- Penalty Order was passed on 07/06/2018. The Assessment order u/s 143(3) was passed on 20/12/2017. The Penalty notice u/s 271(1)(c) was issued on 20/12/2017. There is no dispute on these dates. Thus, the penalty order was passed within Six(06) months of passing the assessment order. In the case under consideration Section 275(1)(c) will be applicable because there is no appeal against the additions made in the assessment order. The statutory time limit to pass the Penalty order is 6 months or end of the financial year whichever is later, if the assessee has not preferred any appeal against the additions made in the assessment order. It is observed that the Penalty Order was passed within Six(06) months of passing the assessment order. Hence it was passed withintime. Thus, the Ground No.1 of the appellant assessee is dismissed. Undisclosed LTCG - assessee submitted that the assessee has failed to offer the Capital gain under the bonafide belief that the land is outside the statutory limit of 8 kms hence the sale is not taxable as capital gain - As facts of the case as they exist at the time of penalty order, there is concealment of income by the assessee from sale of impugned land - assessee has now filed additional evidence to claim that the land is agricultural land and beyond 8 kms. Therefore, in the interest of justice, we set aside the Penalty levied on the issue of sale of impugned land to the file of the assessing officer with a direction to decide the issue afresh after giving opportunity to the assessee. Assessee is directed to file all the relevant documents before the AO - AO shall also verify from the returns and other documents whether the assessee had offered income from agricultural activity from the impugned land in earlier years. The Assessing Officer shall be at liberty to collect necessary evidence independently. We specifically mention here that we have gone through the Penalty notice issued by the AO, it was observed that the AO has struck off the appropriate words in the penalty notice. The Penalty Notice has been specifically issued for concealment of Income. AO has also levied the penalty for concealing the interest income of Rs.8414/-. We set aside this issue also to the file of the AO to decide a fresh after conducting necessary inquiries and after giving opportunity to the assessee. Thus, the Penalty Order under section 271(1)(c) of the Act is set aside and Assessee’s Ground Nos.2 & 3 are allowed for statistical purpose.
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