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TMI Blog2016 (7) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosure of primary facts was there. So, there was no concealment of particulars of income per se. Once basic facts have been disclosed by the assessee it has to be held that he had not concealed the particulars of income. Besides, particulars were not inaccurate as it had made the claim that it considered to be bonafide. Considering the peculiar facts and circumstances of the case, we are of the opinion that the order of the FAA does not suffer from any legal infirmity. The cases, relied upon by the AR, also endorse the view taken by the FAA. So, confirming his order, we decide the effective ground of appeal in favour of the assessee - I.T.A. 2383/Mum/2014 - - - Dated:- 15-7-2016 - Sh. Rajendra, Accountant Member Pawan Singh, Judic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 45 r. w. s. 55 (2) (a) of the Act, he taxed the entire sum as Long-Term Capital Gain (LTCG). He also initiated penalty proceedings u/s. 271(1)(c). The assessee agitated the issue before the First Appellate Authority (FAA), who dismiss the appeal filed by it. The AO gave one more opportunity to the assessee by issue a notice on 05/02/2013 and asked it as to why penalty should not levied. As per the AO, the assessee filed it an explanation and same was placed on record. After considering the submission of the assessee, the AO held that the issue had been upheld by the FAA, that the AO was right in invoking the provisions of section 55 (2) (a) of the Act, that it was a fit case for levying penalty u/s. 271(1)(c) of the Act, that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antastic or fanciful one. Referring to the case of Pfizer Ltd(19taxmanm. com75), he held that if the assessee entertained bona fide belief that the amount in question was not chargeable to tax and a disclosure was made penalty u/s. 271(1)(c) should not levied. He further observed that the assessee had placed all the material before the AO and the return of income as well as during the course of assessment proceedings, that it was a case where a bona fides belief led to filing of a claim which was not entertained, that merely because a disallowance had been made it would not give rise to imposition of penalty de hors the explanation furnished during the course of penalty proceedings, that the AO had not doubted the genuineness of the transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... );Petals Engineers (P) Ltd. (264 CTR 577);Nalin P. Shah (ITXA(LOD)49 of 2013; Administrator of the Estate of Late Mr. E. F. Dinshaw (218 Taxman 125) and Rucha Engineers Pvt. Ltd. (90 CCH 232). 5. We have heard the rival submissions and perused the material before us. We find that the assessee had received ₹ 4. 60 Crores from two parties for surrendering its rights in a property, that the details of the transaction in question were filed in the return of income, that the assessee claimed that the amount received by it was not taxable, that it had taken legal opinion from a professional an advocate of the Apex Court, that the AO held that amount received by the assessee was taxable u/s. 55 (2)(a)of the Act, that the FAA and the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the total income of an assessee, and confirmation of such an action by the appellate authorities should not lead to an automatic conclusion that the assessee has concealed the particulars of income or has filed inaccurate particulars. Courts have analysed both the terms and have held that before levying the penalty u/s. 271(1)(c) an independent view should be taken. In the case before us, the fact is that there was dispute between the AO and the assessee about taxability of an amount received by it during the year under appeal. It is not the case of the AO that the stand taken by the assessee was totally against the provisions of the Act or that prima facie it was inadmissible. Maximum it could be said that there was difference of opini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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