TMI Blog2013 (12) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in the books of a/cs of the assessee and particulars thereof were filed with the return of income - Following Hindustan Steel Ltd. V. State of Orissa [1969 (8) TMI 31 - SUPREME Court] - As the assessee bona fide belief is discernable and the relevant details were furnished along with return of income – Decided in favour of assessee. - ITA No. 3333/Del/2012 - - - Dated:- 13-2-2013 - Shri R. P. Tolani And Shri B. C. Meena,JJ. For the Appellant : Shri V. S. Rastogi Adv. For the Respondent : Shri Bhim Singh Sr. DR ORDER PER R. P. Tolani, J.M :- This is assessee's appeal against CIT(A)'s order dated 26-4-2012, challenging the imposition of penalty u/s 271(1)(c) at Rs. 1,54,797/- qua the addition of Rs. 4,31,550/-, claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... doubted by assessing officer. Assessee believed that the brokerage was paid for stock in trade and debited this amount to business expenditure and filed the return of income offering business income on sale of property and rental income for one month (2 months rent was given to buyer). It shall be further worthwhile to note that immediately thereafter the property was sold to a purchaser. The assessee became eligible for one month's rent and the balance two month's advance rent was handed over to the new purchaser. Thus, the assessee offered one month's rental income as house property income and the brokerage paid remained in the business expenditure. Though no incriminating material was found during the course of 153C assessment, assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the expenditure as business expenditure facilitating sale of stock in trade being a bona fide explanation and belief, there was no case of furnishing of any inaccurate particulars. CIT(A) has overwhelmingly relied on the fact that assessee's first appeal was dismissed and addition was confirmed. Ld. Counsel pleads that penalty proceedings are distinct and separate from assessment proceedings and merely because an addition is sustained in appeal, will not mechanically lead to imposition of penalty u/s 271(1)(c). While deciding the penalty issue, the bona fides of the assessee's explanation and the fact of disclosure of particulars in the return, as held by Hon'ble Supreme Court in the case of Reliance Petro Products (supra) is to be cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold as per the market practices in Connaught Place and in consequence thereof a business decision was taken to first let out the property and then sell the same as a gainful let out property. The assessee's conduct is supported by the fact that immediately after letting out, the property was sold and out of three months advance rent, two month's rent was passed on to the purchaser. The genuineness of the rent and brokerage has not been questioned. In view of these facts and circumstances, we are of the view that - (i) assessee was under a bona fide belief that the brokerage was paid consequent to a business decision of sale of the property after first letting it out and then sale. (ii) Relevant details were filed along with return of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
