TMI Blog2010 (2) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... was not justified in confirming penalty of ₹ 14,46,239/- even though there is no case of any concealment or wrong disclosure of relevant particulars of income. (ii) That the return was filed on the basis of audited accounts and merel y because a claim of deduction was not accepted, there cannot be any presumption about concealment of income. (iii) That the assessment was completed at the loss and as such claim of deduction was made on bonafide basis and in accordance with audited books of accounts and provisions of law. That imposition of penalty is incorrect, illegal and arbitrary. 2. That the orders of the lower authorities are not justified on facts and same are bad in law. 3. Brief facts of the case are that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for inspection. The assessee company kept the property with them only for four months and made an agreement to resell the same. Therefore, the motive was to earn a short-term capital gain from the property. The agreement to sell was made just four and a half month of its purchase. The cost of building includes the cost of land and depreciation is not allowed on cost of land. The land cost in Delhi is much higher than the constructed portion on the said land. Under the circumstances the assessee company was not entitled for depreciation on property as the same was not used for any commercial activities of the company. In view of the above, AO was satisfied that the assessee company has furnished inaccurate particular of its income by c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h further time as discussed and mutually agreed by both the parties and the Sale Deed will be executed and registered by the parties and possession of the demised premises handed over to the vendee immediately thereafter. Therefore, the observation of the AO that through Agreement to Sale placed at Pages 17 to 21 of the Paper Book, the property has been sold during the year is without any basis. Shri Singhvi also pointed out PB Page 7, copy of balance-sheet where the property has been reflected under the head Fixed assets and not as investment. The assessee company does not own any other property and the property had been purchased for the purpose of business activities but the same was not found suitable for commercial activities and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
