9911796707
TMI Blog2022 (11) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Act, 1961 (hereinafter referred as to 'the Act') for Assessment Year 2011-12. 2. This matter relates to levying of penalty under Section 271(1)(c) of the Act to the tune of Rs.45,690/-. 3. The brief facts reading to the case is this that a search under Section 132 of the Act was conducted on 22.09.2015 in Akshar Group of cases including the case of the assessee and consequently, notice under Section 153A of the Act on 24.05.2016 was issued. The assessee on 18.11.2016 filed the return of income under Section 153A of the Act declaring total income at Rs.2,19,220/- same as the return of income filed under Section 139(1) of the Act on 16.09.2011. The relevant assessment under Section 153A r.w.s. 143(3) of the Act was finalize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nothing but deeming provision. The Sub-Section (1) of Section 50C of the Act cannot automatically to give rise to penalty proceeding. According to him, Section 50C of the Act would indicate that full sale consideration received by the assessee required to be considered for the purposes of computing capital gain under Section 48 of the Act, is to be replaced with the help of deeming fiction provided in this. This replacement is further subject to determination of FMV as contemplated under Section 2 of the Act. Thus, addition to the income of the assessee with the aid of Section 50C of the Act is only under deeming condition which may vary in the event a reference is made to be District Valuation Officer under Sub-Section (2) to Section 50C o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red wholly and exclusively in connection with such transfer, (b) the cost of acquisition of the asset and the cost of any improvement thereafter. Section 50C further provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority for the purpose of payment of stamp duty in respect of such transaction, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration. In other words, full consideration mentioned in section 48 is to be replaced by the consideration on which value of the property was adopted for the purpose of payment of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. The Assessing Officer has treated both these amounts at par and took a consolidated figure. He has nowhere made out that the assessee has furnished inaccurate particulars of income. Even in the assessment order much discussion is not available on this issue. Considering overall facts and circumstances, I find force in the contentions of the assessee and delete the penalty. 8. In the result, appeal is allowed." 6. We do not find any reason to deviate from the stand taken by the Coordinate Bench on the identical facts of the case. Hence, respectfully relying upon the same, we do not justify the imposition of penalty levelled against the assessee on the basis of the deeming provision of Sub-Section (2) to Section 50C of the Act. Thus, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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