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TMI Blog2015 (12) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... s co-owner along with nine persons of land measuring 6 hector, 24 acre and 23 sq.feets. situated at Bamroli, Surat. According to the assessee, this land was sold for Rs. 35 lakhs. However, stamp duty was paid on the value of Rs. 1,21,72,500/-. As per the assessee, the sale price fallen to her share was Rs. 3,55,000/-. The assessee did not file any return. A notice under section 148 of the Income Tax Act was issued and in response to the notice, the assessee has filed her return of income on 5.9.2011 declaring total income of Rs. 82,810/-. The AO has passed assessment order on 16.12.2011 under section 143(3) r.w.s section 147 of the Act. The AO has confronted the assessee as to why value on which stamp duty was paid ought not to be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income as per Explanation-(1) and (3) appended to the section 271(1)(c) of the Act. 5. With the assistance of the learned representative, we gone through the record carefully. Section 271(1)(c) of the Income Tax Act, 1961 has direct bearing on the controversy. Therefore, it is pertinent to take note of the section. "271. Failure to furnish returns, comply with notices, concealment of income, etc. (1) The Assessing Officer or the Commissioner (Appeals) or the CIT in the course of any proceedings under this Act, is satisfied that any person (a) and (b)** ** ** (c) has concealed the particulars of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. (i)and (Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. As far as the quantification of the penalty is concerned, the penalty imposed under this section can range in between 100% to 300% of the tax sought to be evaded by the assessee, as a result of such concealment of income or furnishing inaccurate particulars. The other most important features of this section is deeming provisions regarding concealment of income. The section not only covered the situation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation-1 to section 271(1)(c) postulates two situations; (a) first whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deeming fiction comes into play in the above two situations then the related addition or disallowance in computing the total income of the assessee for the purpose of section 271(1)(c) would be deemed to be representing the income in respect of which inaccurate particulars have been furnished. 7. In the light of the above, let us examine the facts and circumstance of the case. As far as computation of long term capital gain of Rs. 4,56,219/- is concerned, we find that the ld.AO has made this addition by invoking the provision contained in section 50C of the Income Tax Act. The section 50C is a deeming provision which empowers the AO to deem sale consideration equivalent to the amount on which the value has been adopted for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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