TMI Blog2020 (5) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... has correctly taken the view that penalty is not leviable on the long term capital gain declared by the assessee. Disallowance of interest expenditure - said disallowance was made only for want of proof. In our view the decision rendered by Hon ble Supreme Court in the case of Price Water House Coopers Pvt. Ltd. [2012 (9) TMI 775 - SUPREME COURT] would support the case of the assessee in respect of long term capital gain and the decision rendered by Hon ble Supreme Court in the case of Reliance Petro Products Ltd [2010 (3) TMI 80 - SUPREME COURT] would support the case of the assessee in the case of interest disallowance. The decision in the case of MAK Data Pvt. Ltd. [2013 (11) TMI 14 - SUPREME COURT ] in our view, was rend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income filed by him. Accordingly the assessee furnished a statement of working of capital gain and declared long term capital gain of ₹ 3.13 crore. The assessee also claimed exemption u/s 54F of the Act to the tune of ₹ 33.36 lakhs and accordingly the taxable capital gain was declared at ₹ 2.77 crores. The AO noticed that the assessee has claimed cost of improvement incurred on land as deduction against the sale consideration. The AO disallowed the claim of improvement and accordingly computed long term capital gain at ₹ 3.32 crore. He also restricted the exemption u/s 54F of the Act to ₹ 18.42 lakhs. Accordingly the AO computed the taxable capital gain at ₹ 3.13 crores as against ₹ 2.77 core ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 penalty is not leviable on such kind of disallowance. 9. On the contrary the ld DR submitted that the assessee did not declare long term capital gain at the time of filing return of income though he was aware of the fact of sale of land. Accordingly the ld DR submitted that the said action of the assessee resulted in concealment of particulars of income. Since there was difference in the amount of long term capital gain computed by the assessee and that computed by the AO, the same has resulted in furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 belatedly has expired. Therefore, the AO virtually accepted the assessee's version and assessed the capital gains after reworking out the same as per provisions of the Act. From this it is very clear that, there is a voluntary act of the assessee in bringing to the notice of the AO the omission to show income from capital Gains in the return filed. Thus, there is no escapement of income at all and there was no attempt by the AO to detect this omission. Before the AO, while filing his explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 6,61,997 21,78,135 Total 6,36,23,433 2,44,90,723 2,22,38,203 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have at best considered levying penalty u/s.271(1)(c) only on ₹ 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 unable to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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