TMI Blog2018 (4) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... s long term capital gain by substituting year of acquisition as 1999 instead of 2004 and said mistake was not brought to the notice of AO suo moto. In this background penalty was confirmed. Here question was whether at the time of filing of return, the assessee could harbor a belief that there is no long term capital gain tax liability upon the assessee. Thus the assessee could easily harbor a belief that there was no long term tax liability upon him. It is a different matter that a belief did not meet approval of the AO. In view of the above discussion, we are of the view that assessee does not deserves to be visited with penalty. - Decided in favour of assessee - ITA. No. 2065/AHD/2017 - - - Dated:- 13-4-2018 - Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member Assessee by : Shri Tushar Hemani, AR Revenue by : Shri Saurabh Singh, Sr.DR ORDER Per Rajpal Yadav, Judicial Member Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-20.7.2017 passed for Asstt.Year 2013-14. 2. Solitary issue involved in this appeal is whether the assessee deserves to be visited with penalty under section 271(1)(c) of the Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. 07.03.2014 2,00,000/- - 2. 07.04.2014 1,25,00,000/- 3. 21.04.2014 2,29,827 /- l 4. 28.04.2014 146625/- 5. 10.04.2014 886391/- 6. 15.04.2014 332580/- 1,42,95,423/- B. NEW AGRICULTURAL LANDS PURCHASED/INVESTED AND PAYMENT MADE FOR THE PURCHASE OF AGRICULTURAL LAND. 1. Agricultural Land bearing Survey No 1030/3,1013 and 1039 at moujeOganaj Purchased. Date Survey Number Amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.09.2013 Agricultural Land bearing survey noil at moujegota. 85,000/- TOTAL (3) 24,15,000/- (B-} Total Investment made for purchase of New Agricultural Lands. (1+2) 1,15,65,000/- Total Investment Made for purchase of New Agricultural lands and Purchase of New Residential House (A+B) 2,62,60,423/- NOW THE RESPECTIVE DEDUCTIONS U/S 54-B 54F IS AS UNDER A) DEDUCTION U/S 54-B - TOTAL AMOUNT OF INVESTMENT MADE WITHIN TIME PRESCRIBED B) PROPORTIONATE DEDUCTION U/S 54F-TOTAL AMOUNT OF INVESTMENT MADE WITHIN TIME PRESCRIBED TO THE NET ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice received under section 271(1)(c) r.w.s section 274. However, the ld.AO was not satisfied with the explanation of the assessee, and he imposed penalty of ₹ 17,45,845/- which is equivalent to taxes sought to be evaded on the addition of ₹ 84,76,976/-. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 5. The ld.counsel for the assessee while impugning orders of Revenue authorities contended that section 54B would authorise an assessee to make investment in a capital asset within two years from the date of sale of concerned agriculture land. He pointed out that agriculture land was sold by the assessee on 24.5.2012. Hence, he could have invested the funds in new agriculture land till 31.5.2014. The assessee has made investment and made payments to vendors. He took us through details compiled in the paper book at page no.19 wherein he showed complete details of payments made to six vendors starting from 11.9.2012 upto 26.12.2013. He pointed out that identity of vendors is not in dispute. The AO has accepted the claim of the assessee qua payments made upto serial no.9 i.e. payments made upto 20.9.2013. This payment was accepted by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of his income or fringe benefit the furnishing of inaccurate particulars of such income or fringe benefits: Explanation 1- Where in respect of any facts material to the computation of the total income of any person under this Act, (A) Such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the CIT to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, then, the amount added or disallowed in computing the total income or such person as a result thereof shall, for the purposes of Clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed. 8. A bare perusal of this section would reveal that for visiting any assessee with the penalty, the Assessing Officer or the Learned CIT(Appeals) during the course of any proceedings before them should be satisfied, that the assessee has; (i) concealed his income or furnishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal 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. 9. In the light of the above, let us examine explanation of the assessee. The case of the assessee is that he has made investment in Gota land to the extent of ₹ 1,09,82,400/-. This investment was made by the assessee within two years of sale of agriculture land. Thus, case of the assessee was that capital gain arose to him on sale of agriculture land was invested in purchase of agriculture land. According to the assessee he was entitled for deduction under section 54B. The AO has cut short his claim by a sum of ₹ 85,67,400/- on the ground that this payment was made after due date of filing of return. Thus, the question which arose is whether the assessee has made any deliberate attempt for concealment of income. Whether the assessee could harbor a belief that since he has made an investment of ₹ 1,09,82,400/- in purchase of agriculture land which could have been purchased within two years from the sale of agriculture land and after such an investment no capital gain liability would be upo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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