2011 (8) TMI 1161 - AT - Income Tax

Summary

Issues involved: Canceling penalty u/s 271(1)(c) for assessment year 2006-07 based on long term capital gain declaration discrepancy.

Summary:
The department objected to canceling a penalty of Rs. 6,41,798/- u/s 271(1)(c) related to assessment year 2006-07. The AO assessed the sale price of a property at Rs. 83,60,368/- as per section 50C of the IT Act, leading to the penalty initiation. The AO found the assessee furnished inaccurate particulars for concealing income, resulting in the penalty imposition. However, the ld. CIT (A) canceled the penalty based on the assessee's submissions and various legal precedents cited. The Tribunal upheld the ld. CIT (A)'s decision, emphasizing that the addition to total income was as per section 50C, not indicative of concealment or inaccurate particulars. Citing a similar case, the Tribunal highlighted that no income was concealed, leading to the penalty cancellation.

In conclusion, the Tribunal confirmed the cancellation of the penalty by ld. CIT (A) and dismissed the department's appeal, citing lack of concealment or inaccurate particulars in the case.