9911796707
TMI Blog2020 (5) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) of the Act. 3. We heard the parties and perused the record. 4. The facts that lead to levy of penalty u/s 271(c) are stated in brief: The assessee is an individual and is a Doctor. He filed his return of income declaring a total income of Rs. 23.74 lakhs. During the course of asst. proceedings the assessee submitted to the AO that he has earned long term capital gains on sale of a plot. The total consideration received was stated to be Rs. 3.50 crores. It was submitted that long term capital gain was omitted to be included in the return of income filed by him. Accordingly the assessee furnished a statement of working of capital gain and declared long term capital gain of Rs. 3.13 crore. The assessee also claimed exemption u/s 54F o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained by an Accountant. The said Accountant has inadvertently included the sale consideration received on sale of land in the list of sundry creditors instead of crediting the same to the capital account of the assessee. Hence while computing total income at the time of filing return of income, the same has escaped attention. However, during the course of asst. proceedings, the said omission was brought to the notice of the AO before it is being detected by him. Accordingly the ld AR submitted that the ld CIT(A) has deleted the penalty on this amount by duly appreciating the above facts. 8. With regard to the disallowance of interest expenditure, the ld AR submitted that the AO has disallowed the claim only for want of proof and hence pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard. "6. I have gone through the assessment order, the penalty order carefully. In both the orders, the AO has drawn an inference that, the assessee has furnished inaccurate particulars of income and has came to conclusion that penalty u/s.271(1)(c)is liveable just because in the return of income field originally on 30/09/2013 the assessee has not shown the income from capital gains. The AO himself has mentioned in the assessment order that, the assessee during the course of hearing brought to the notice of the AO that, he has not disclosed the same in the return of filed. The AO accepted the assessee's explanation that, by the time the assessee came to know of this omission, the time to file a revised return of income even belate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has been assessed to tax for many years and is represented by a CA. Based on this he has dome to conclusion that the assessee has concealed his particulars of income at the time of filing his return of income by not showing the income from capita! gains. 7. I have gone through the audited statement of accounts for the earlier 3 years including the assessment year under consideration. The balance sheets reveal the following financial affairs of the assessee. Details AY 2013-14 Rs. AY 2012-13 Rs. AY 2011-12 Rs. Fixed assets 87,06,962 51,32,930 26,20,104 Investments 3,32,20,284 1,86,28,908 1,43,27,923 Current assets Cash on hand 71,199 37,177 24,519 Cash at bank 2,09,96,187 6,61,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. Thus the AO could have at best considered levying penalty u/s.271(1)(c) only on Rs. 36,36,0891-. But this also will not come for levy of penalty because this income has arisen on account of reworking of the quantum of capital gains and not because of any omission to show the income. 9. I have gone through the written submissions made by the assessee who has tried to establish the fact that there has been no concealment or furnishing of inaccurate particulars of income by referring to the remarks made by the AO in his assessment order at page-3 and also the comments at para -7.2 of the assessment order. These remarks made by the AO clearly spell out the fact that it was the assessee who brought to the notice of the AO as to how he was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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