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2019 (1) TMI 675 - AT - Income TaxPenalty u/s 271(1)(c) - unaccounted payment towards the sale of vacant land - Held that:-Unaccounted payment towards the sale of vacant land at ₹ 27. 15 lakhs in the ratio of 15:85 for vacant land and agricultural land. Though the payment was towards the exempt land as well as the vacant site, the payment of unaccounted money was passed on to the assessee towards the sale of agricultural land and the vacant site, which is established from the statements recorded from both the vendor and the vendee. Once the vendor and vendee have accepted the receipt and the payment of unaccounted money, subsequent retraction has no relevance and it is a valid piece of evidence. It is admitted fact that after completion of the search also, the assessee has admitted the additional income towards receipt of sale of land and taken the credit for application of income towards the investments. Therefore, we are unable to accept the contention of the CIT(A) that without bifurcation of the exact amount, the receipt of on-money does not lead to concealment. Similarly, the observation of the CIT(A) that no material was found during the course of search also is not acceptable, since, both the parties have agreed the payment and receipt of unaccounted money and the assessee has explained the application of unaccounted money towards the source for investment made to various other properties as observed from the recitals of the penalty order. Hence, we hold that this is a clear case of concealment of income which attracts penalty u/s 271(1)(c) and we have no hesitation to uphold the order of the AO. AO has levied the penalty on concealment of income of ₹ 1,61,71,166/- which was the addition enhanced by the Ld. CIT(A) in its appellate order. Since the Tribunal has adopted the correct method for appropriation of on money towards the sale of vacant land at ₹ 27. 15 lakhs, we uphold the imposition of penalty on the concealed income of ₹ 27. 15 lakhs against the levy of penalty on concealed income of ₹ 1. 61 lakhs. Accordingly we set aside the order of the Ld. CIT(A) and confirm the penalty to the extent of addition of ₹ 27. 15 lakhs and direct the AO to revise the penalty. - Decided partly in favour of revenue.
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