9911796707
TMI Blog2012 (2) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... On examination of the return, it was found by the AO that the assessee had sold agricultural land at village Rajaswas, Tehsil Amer, Jaipur for Rs.87,69,700/- and claimed it as exempt from the purview of taxation as capital gain on the ground that the land was situated outside 8 kms of Municipal limits of Jaipur Municipal Corporation. The AO conducted certain enquiries and obtained information u/s 133(6) from Tehsildar of Amer regarding location of the agricultural land sold by the assessee being situated within 8 kms of municipal limits. 2.1. Thereafter a notice u/s 148 was issued on 16.7.2007 asking the assessee to show cause why the sale of land may not be treated as capital asset as defined u/s 2(14) of the IT Act. In response the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipur. This was done as per IT notification No.9447 dated 6.1.94. Thus, the Tehsildar was contacted and he issued a certificate to the effect that the said agricultural land was situated beyond 8 kms of municipal limits of Jaipur. The assessee relying on this certificate issued by a Govt. official filed its return and also filed a detailed note along with the return. ii) Subsequently, on receipt of the notice u/s 148 the assessee filed a revised return to avoid litigation and included the long term capital gain of Rs.62,95,467/- as long term capital gain from sale the said agricultural land. iii) The AO accepted this return and long term capital gain declared therein. He however, made an addition of Rs.7,12,410/- being charges of stamp dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and made known to him the municipal limits of Jaipur were last extended in the year 1992 and since then the same municipal limits are existing till date. Thus, it is incorrect on part of the Tehsildar a Govt. official to issue a contrary letter No. to ld. AO ( No.2083 dated 4.7.21007) as against certificate dated 30.10.2004 issued to assessee on the same issue without any valid reason being mentioned for change of opinion. In the totality of facts of the case it cannot be concluded in law that said certificate issued by Tehsildar to assessee was wrong and letter sent to ld. AO was correct.: In view of the above facts, he sought that the penalty imposed u/s 271(1)(c) be deleted." 4. After considering submissions and perusing the material o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses for purchase of stamps for registering the sale deed. 4.11. As per section 271(1)(c)if the AO or the CIT(Appeals) or the Commissioner in the course of any proceedings under this act is satisfied that any person has concealed the particulars of his income or furnished inaccurate particulars of such income then, the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of clause (c) of this sub section, be deemed to represent the income in respect of which particulars have been concealed. 4.12. The basis of imposition of penalty as per section 271(1)(c) is the income furnished by the assessee in his return. In the present case the AO has accepted the income furnished by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of certificate issued by the Tehsildar, the land in question is not liable to be capital gain tax. Copy of this note is placed at page 11 of the paper book. Copy of certificate issued by the Tehsildar is placed at page 12 of the paper book. Due to these reasons, the assessee was under bonafide intention that the gain in question is not liable to be taxed as the agricultural income is situated beyond 8 kms from the municipal limits. However, the AO found that the land is within 8 kms of the municipal limits and, therefore, the claim of the assessee was rejected and capital gain was assessed and therefore, the penalty was also levied. As stated above, there was no malafide intention of the assessee in not paying any capital gain on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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