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2015 (11) TMI 569 - ITAT AHMEDABADPenalty under section 271(1)(c) - assessee failed to substantiate its claim of agriculture income with the help of supporting evidence - Held that:- The land revenue record maintained by the State Government, it has been shown as owner in possession of land admeasuring 3,92,714 sq.meters, which is roughly 170 acres. In the column of cultivator, name of the assessee-company has been recorded. The assessee has produced land record from the revenue authorities of the State Government. It failed to substantiate its explanation about the agricultural income. It is the owner of the agriculture land. It has been shown as cultivator in the revenue record. Thus, its claim was not false. The AO has nowhere recorded any finding that the assessee has furnished any inaccurate particulars of its income. The only area of dispute between the AO and the assessee is that the assessee failed to substantiate its claim of agriculture income with the help of supporting evidence. But the claim was not found to be false, because the assessee is the owner and in possession of huge tract of agriculture land. The income of the assessee has been estimated. The AO cold have estimated the generation of agriculture income to this extent, out of such huge tract of agriculture land. Therefore, to our mind, the assessee does not deserve to be visited with the penalty under section 271(1)(c) of the Act, and we delete penalty - Decided in favour of assessee.
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