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2015 (6) TMI 831 - AT - Income TaxPenalty u/s 271(1)(c) - assessee has not disclosed any capital gain on sale of the land at Kakkanad as claim of the assessee is that the land sold by the assessee is an agricultural land, therefore, it is exempted from taxation - Held that:- The classification of land as agricultural land the certificate issued by the village officer and the local bodies assumes more significance. Therefore, this Tribunal is of the considered opinion that the claim of the assessee that he was under the bona fie impression that the land was an agricultural land is justified. This Tribunal is of the considered opinion that there was a reasonable cause on the part of the assessee in not disclosing the gain arising on sale of such land. Moreover, when the assessee made a claim on the bona fide belief that the subject land was an agricultural land, merely because the same was rejected, that cannot be a reason to levy penalty in view of the judgment of the Apex Court in Reliance Petro Products Pvt Ltd (2010 (3) TMI 80 - SUPREME COURT). Hence, this Tribunal is of the considered opinion that levy of penalty u/s 271(1)(c) is not justified in view of section 273B of the Act. - Decided in favour of assessee.
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