TMI Blog2015 (6) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in not disclosing the gain arising on sale of such land. Moreover, when the assessee made a claim on the bona fide belief that the subject land was an agricultural land, merely because the same was rejected, that cannot be a reason to levy penalty in view of the judgment of the Apex Court in Reliance Petro Products Pvt Ltd (2010 (3) TMI 80 - SUPREME COURT). Hence, this Tribunal is of the considered opinion that levy of penalty u/s 271(1)(c) is not justified in view of section 273B of the Act. - Decided in favour of assessee. - I.T.A No.200/Coch/2014 - - - Dated:- 6-2-2015 - Shri N.R.S. Ganesan (JM) And Shri Chandra Poojari (AM) JJ. For the Appellant : Shri K.R. Sudhakaran Pillai For the Respondent : Smt. Latha V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was under the bona fide impression that the profit on sale of agricultural land was exempted from tax, therefore there was a reasonable cause on the part of the assessee u/s 273B of the Act. The ld.representative has placed his reliance on the judgment of the Punjab Haryana High Court in CIT vs Rajiv Bhattara (2014) 360 ITR 121 (P H); Gujarat High Court in CIT vs Whitelene Chemicals (2014) 360 ITR 385 (Guj) and the judgment of the Jaipur Bench of the Rajasthan High Court in CIT vs Krishi Tyre Retreading and Rubber Industries (2014) 360 ITR 580 (Raj). The ld.representative has also placed reliance on the judgment of the Apex Court in the case of Ashok Pai vs CIT (2007) 292 ITR 11 (SC); CIT vs Reliance Petro Products Pvt Ltd (2010) 322 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isclosing any exempted income. The assessee further claims that there was a reasonable cause on the part of the assessee for not disclosing the capital gain in the return of income. 5. No doubt, this Tribunal examined the issue after considering the claim of the assessee that the subject land is an agricultural land and found that the land is not an agricultural land. Therefore, the issue cannot be reagitated at this stage. It is also a well settled principles of law that the assessment proceedings and the penalty proceedings are separate and independent. The authority concerned is expected to re-appreciate the material in the penalty proceedings. If there is a reasonable cause for not disclosing a particular income, then it may be a rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the revenue to show that the state government was maintaining any record. In fact, the assessing officer, after examining the Village Administrative Officer, Additional Tahsildar and Agricultural Officer, found that the Village Administrative Officer and Tahsildar are not maintaining any record for the purpose of cultivation. Even the Agricultural Officer is not maintaining any records for cultivation. The records available with the state government are only the register for collection of contribution towards Kerala Agricultural Workers Welfare Fund, Basic Tax Register and the classification of land as agricultural land. Apart from these, there is no other material available with the state government. If that is so, it is not known ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of land situated within the revenue limits of Navagaon village in the municipal limits of Surat municipality. In the year 1967, the assessee agreed to sell the land to a housing society. The assessee claimed the gain on transfer of such land as exempt u/s 2(14) of the Act. The Apex Court found that the assessee applying for permission to sell the land for non agricultural purpose and immediately after application for conversion of land, the land was not cultivated for a period of four year. In those factual circumstances, the Apex court found that the land in question is not an agricultural land. In the case before us, the assessee has not applied for conversion of land for non agricultural purpose. The land in question is classified as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) classification of land by state government as agricultural land; (iv) receipt for payment of contribution to agricultural workers welfare fund; and (v) Basic Tax Register. From these materials, it appears that the state government has classified the subject land as agricultural land. The government is collecting tax as agricultural land which is evident from the Basic Tax Register. The assessees are also contributing towards Agricultural Workers Welfare Fund. The Village Officer certified that the subject lands were subjected to cultivation. In those circumstances, this Tribunal is of the considered opinion that the subject lands were agricultural lands beyond the municipal limits or beyond 8 kms radius of the notified municipality. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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