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TMI Blog2012 (7) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... l gain from which had been computed on the basis of consideration received/accruing to the assessee. The assessee had not complied with the provisions of section 50C as per which the capital gain was required to be computed on the basis of stamp duty valuation in case the same was to be hired. The assessee also did not revise the return of income. When pointed out by the AO at the time of assessment proceedings, the assessee filed revised computation declaring the capital gain under section 50C vide letter dated 26.11.2008 which was after the assessment was framed on 20.11.2008 in which the AO had already made addition of Rs.7,76,579/- to the returned income on this account and also initiated penalty proceedings under section 271(1)(c) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aled any particulars of income. The actual consideration received by the assessee had been correctly declared and there was no case that the assessee had not furnished all necessary facts nor the genuineness of any document was doubted. Merely because the assessee agreed to the addition, did not mean that the assessee had concealed any income. It was further submitted that the assessment had been made on the basis of deeming provision, and therefore no penalty could be imposed in such cases. The ld. AR placed reliance on the decision of the Tribunal in the case of Shri Sukhabhai P. Ahir (HUF) vs. ITO in ITA No.2454/Ahd./2009 order dated 15.4.2011 for assessment year 2005- 06 and the decision of the Tribunal in the case of Renu Hingorani in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts (supra), was not applicable. It was also pointed out that in the penalty notice issued by the AO, initiation of penalty under section 271(1)(c) was clearly mentioned at the end of the notice and, therefore it could not be said that the penalty proceedings had not been correctly initiated. It was, accordingly urged that the penalty levied should be upheld. 4. We have perused the records and considered the rival contentions carefully. The dispute is regarding levy of penalty for concealment of income under section 271(1)(c). The undisputed facts are that the assessee during the year had sold immovable property in respect of which stamp duty value was higher that the consideration received by the assessee. In such a case, provisions of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation which he is not able to substantiate and is also not able to prove that the explanation is bonafide and all particulars necessary for computation of income had been given, the assessee is deemed to have concealed particulars of income. 4.2 In this case, the assessee was required to compute capital gain under the clear provisions of section 50C as per which capital gain was to be computed on the basis of stamp duty value as the assessee had not disputed the valuation. The assessee however declared much lower capital gain on the basis of consideration received which was against the clear provisions of law. The explanation of the assessee that lower declaration of capital gain was by mistake cannot be considered as bonafide beca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd discarded items. The Hon'ble High Court observed that the claim of the assessee was not only incorrect in law but was wholly without any basis. The Explanation of the assessee therefore was not considered bonafide and levy of penalty was upheld. The argument of the ld. AR that penalty proceedings had not been properly initiated can not be accepted as in the penalty notice section under section 271(1)(c) was clearly mentioned. 4.3 The ld. AR for the assessee has placed reliance on certain decisions of the Tribunal which in our view are distinguishable. In case of Shri Sukhabhai P. Ahir (HUF) (supra) the penalty had been imposed in relation to capital gain under section 50C of the Act as the assessee had declared capital gain on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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