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2019 (1) TMI 1521 - ITAT AHMEDABADPenalty u/s 271(1)(c) - deliberate concealment of income OR bonafide contesting claim of exemption - assessee was not entitled to claim u/s 54F and 54B for the specific reason that the land so sold was not agricultural one, the same was converted into a non-agricultural land before transferring it on 30.11.2010 by the assessee - Held that:- It is evident from the records that in this particular case, the assessee has disclosed all particulars with bonafide belief, no such disclosure was found to be incorrect. Neither the assessee concealed the income by not showing such income in its return or in its books of accounts. The assessee did not hide any income so mentioned in his return, the documents relating to the agricultural land sold by the assessee was produced before the AO, claimed u/s 54F regarding investment for purchase of land for construction of house, investment for purchase of flat or cost of construction of the residential house was duly disclosed by the assessee in his return and the corroborating evidences were also placed before the Assessing Officer. Therefore, there is no conclusive evidence of concealment of income ever found by the authorities below. The primary fact was duly disclosed by the assessee relating to his claim. Merely because the claim was made on bonafide belief of the appellant, the same cannot be held that the income was concealed or inaccurate particulars were furnished. Since, the claim was rejected as not tenable does not empower the revenue authorities to levy the penalty. We repeat that the appellant had furnished all the details, information and explanation regarding his claim of exemption during assessment. No information or details were withheld from the acknowledgement of the Assessing officer. It can be a wrong claim, but according to us, cannot be said to be false. Merely because the claim was made on bonafide interpretation and belief of the appellant it cannot be held that income was concealed or inaccurate particulars furnished. Case of COMMISSIONER OF INCOME-TAX VERSUS RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT] to be followed - decided in favour of assessee
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