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2023 (10) TMI 833 - AT - Income TaxPenalty u/s 271(1)(c) - addition of capital gain - addition so made is of the amount being the amount considered for the stamp duty u/s. 50C - HELD THAT:- AO considered the consideration as per stamp duty and that too without considering the fact that the assessee has already received a sum of Rs. 1,20,000 and ld. AO has not considered the cost of acquisition. If reduced the consideration of Rs. 1,20,000/- the balance amount is the difference between the consideration and stamp duty value as per provision of section 50C of the act. Thus, as not disputed by the ld. DR representing the revenue that the amount after reducing the consideration the sustained amount is on account of the stamp duty valuation and there are various decision of the co-ordinate bench of the tribunal holding the there cannot be levy of penalty on the amount sustained on account of the provision of section 50C this view of the tribunal is also confirmed in the case of Fortune Hotels and Estates (P.) Ltd [2014 (10) TMI 783 - BOMBAY HIGH COURT] Thus in this case we note the amount remain to be added [after deducting the initial exemption and consideration] is the only amount added on account of the difference in the stamp duty valuation and the levy of the penalty on that amount is not legal based on the finding of the Bombay High Court we vacate the levy of the penalty in the case and thus, the assessee grounds of appeals are allowed.
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