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2018 (4) TMI 873 - AT - Income TaxPenalty u/s 271(1)(c) - deduction u/s 54B claimed - as per AO payment was made after due date of filing of return - Held that:- In order to show his bona fide the assessee has produced details of payment made to the vendors. The assessee has produced their identity, copy of sale deed and copies of receipts executed by the vendors. To our mind, a layman could easily habour a belief that since he has already invested total capital gain in purchase of new agriculture land, therefore, there might not be any liability of tax qua alleged capital gain. It is a different matter that he has not challenged additionas well as the ld.AO has adopted a different methodology for denying benefit to the assessee. But his explanation was not proved to be false by the Revenue. He has substantiated his explanation with the help of details of payments, copies of sale deed as well as receipts of payments executed by vendors. As far as case law referred by the ld.DR is concerned, it is altogether on different facts. The assessee had short term capital gain on sale of land which was wrongly claimed as long term capital gain by substituting year of acquisition as 1999 instead of 2004 and said mistake was not brought to the notice of AO suo moto. In this background penalty was confirmed. Here question was whether at the time of filing of return, the assessee could harbor a belief that there is no long term capital gain tax liability upon the assessee. Thus the assessee could easily harbor a belief that there was no long term tax liability upon him. It is a different matter that a belief did not meet approval of the AO. In view of the above discussion, we are of the view that assessee does not deserves to be visited with penalty. - Decided in favour of assessee
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