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2021 (8) TMI 961 - ITAT DELHIPenalty u/s 271(1)(c) - Assessee wrongly claimed the income as agricultural income - Entitled for exemption u/s 10(1) denied - HELD THAT:- The present assessment years also are not the simple case of disallowance of expenditure as in the case of Reliance Petro Products Private Limited [2010 (3) TMI 80 - SUPREME COURT]. The facts remains unchanged that the real activity of purchase of the seeds has been planned and arranged in such a way as it look like the agricultural activity but the assessee has not succeeded in camouflaging its real activity. One of the strange features in the kind of arrangement or documentation of the assessee is that in case of no yield or damage of crop, the expenses on labour or service or fertilizer etc. has to be borne by the farmer because in absence of no crop, there would be no procurement price to the farmer and the farmer will get nothing. In such circumstances, how the assessee could explain that the cultivation has been done by the company. Another strange feature is that how the assessee can claim as cultivator as its name is not appearing in the revenue land records maintained either as lessee of the land or the cultivator. Since the Tribunal in preceding Assessment Years have already given a finding that the assessee made claim of agricultural income in mala fide manner in gross abuse of the provisions of the Income Tax Act and since the facts of the impugned year are identical, therefore, respectfully following the order of the Tribunal in assessee’s own case in preceding year,[2017 (12) TMI 1058 - ITAT DELHI] we uphold the penalty imposed by the AO. Thus, the order of the CIT(A) is reversed and we uphold the findings of the Assessing Officer. - Decided in favour of revenue.
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