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TMI Blog2015 (8) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... Society Ltd. Mohali' (hereinafter referred to as 'Society') consisting of 207 members was formed, which was the owner of 27.0 acres of land in Village Kansal, District Mohali. This Society entered into a tripartite joint development agreement (hereinafter referred to as 'agreement') on 27.04.2007 with M/s Hash Builders (Pvt.) Ltd., Chandigarh and M/s. Tata Housing Development Company Ltd., Mumbai (hereinafter referred to as THDC), by virtue of which the Society would transfer its land for development in lieu of monetary consideration and also consideration in kind to the members of the society. The assessee was also a member of the said Society owning 250 sq. yards land. The total consideration was settled at Rs. 40,00,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts of the case. As per the provisions of section 271(l)(c), penalty can be levied, if the assessee has concealed particulars of his income or furnished inaccurate particulars of such income. For the sake of ready reference, Explanation-I below Section 271(1)(c) is reproduced below : "Explanation 1.-Where in respect of any facts material to the computation of the total income of any person under this Act,- (A) such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commissioner to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bonafide and that all the facts r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n shown was only the amount which he had actually received during the previous year. It is clear from the arguments raised by the appellant that there were certain controversies and disputes in regard to the transfer of plot. In fact, I understand that the various issues have still not been resolved and the construction of the building, in which the appellant was to get a flat as a part of sale consideration, has not started till date. In these peculiar circumstances, the belief of the appellant that the capital gains on which he has to pay tax has to be computed only on the basis of the amount which he has actually received, cannot be considered to be totally unreasonable, though it was not strictly legal. The fact that all the material fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee are admittedly identical as have been decided by the Hon'ble Punjab & Haryana High Court in the case of Shri C.S. Atwal Vs CIT, Ludhiana (supra) in which the Hon'ble High Court decided the issue of exigibility to capital gain in favour of the assessee and against the revenue. In the case of the present assessee also, the assessee has, of his own filed another return of income disclosing all the material facts relating to transfer of plot and has disclosed capital gains on the amount which was actually received during the year under consideration. The dispute was left regarding transfer of plot and the amount which was not yet received through the agreement to sell. The ld. CIT(Appeals), therefore, on proper appreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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