2012 (6) TMI 718

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..... ed to be filing of inaccurate particulars on the part of the assessee. Hence, penalty cannot be levied on the basis of deeming provision - Decided in favor of assessee.
S/SHRI MUKUL KUMAR SHRAWAT, ANIL CHATURVEDI, JJ. Assessee by : Shri J.P. Shah Revenue by : Shri Raj Mehta O R D E R PER ANIL CHATURVEDI, ACCOUNTANT MEMBER: This appeal is by the assessee against the order of the CIT(A)-IV, Surat dated 12.10.2009 for the A.Y.2006-2007. 2. The assessee was owner of agricultural land at Adajan Gaon along with eight other co-owners. During the year the land was sold for a total consideration of Rs.36 lacs and the assessee in the original return of income filed u/s 139(1) on 31.5.2006 offered capital gains by taking the sales consid .....

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..... d the assessee was of the view that the value adopted by stamp duty authority was more than the fair market value of such property. The assessee has not received any amount in excess of what is shown in the sale deed but the tax has been levied by invoking the deeming provisions of section 50C. It was further stated that the stamp duty and the additional stamp duty was paid by the purchaser and not by the assessee. There is nothing on record which suggests that the assessee has received amount over and above the sale value declared in the sale deed or purchaser has paid additional amount to the assessee. It was further submitted that the penalty proceedings are apart and separate from assessment proceedings and therefore the additions made .....

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..... / material before the AO. The AO has not doubted the genuineness of the documents/details furnished by the assessee. Only because the assessee agreed to the additions because of the deeming provisions it cannot be construed to be filing of inaccurate particulars on the part of the assessee. The assessee agreed to addition on the basis of valuation made by the stamp valuation authority cannot be a conclusive proof that the sale consideration as per the sale agreement is seemed to be incorrect and wrong. In view of these facts we are of the considered view that penalty cannot be levied on the basis of deeming provision. We accordingly delete the same. 6. In the result, the appeal of the assessee is allowed. Order pronounced in Open Court o .....

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