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TMI Blog2018 (9) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 1,49,520/- on 27.3.2006 which was processed u/s. 143(1) of the Act on 31.3.2006. Later, the case of the assessee was taken up under compulsory scrutiny. Thereafter, the assessment was completed on total income of Rs. 26,89,020/- against a returned income of Rs. 1,49,520/-. During the course of assessment, the A.O. observed that the assessee had introduced a capital of Rs. 41 lakhs on account of sale of agricultural land at Khasra No. 1567 at Village Balawala in which he enjoyed 50% share. During the course of scrutiny copies of the sale agreement showing therein transfer of total land of area of 1.153 hectares in lieu of Rs. 82 lakhs were produced. The sale agreements were concluded between the assessee and his son on the one part and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land was sold between 6.5.2004 and 28.3.2005. The A.O. observed that the total sale consideration received from these 16 persons as per the sale deeds were Rs. 31,69,000/-. He observed that as the assessee's share of the land was half, half of the proceeds would be his. He concluded that the assessee was not able to produce any satisfactory evidence in support of capital introduced made by him to the tune of Rs. 41 lakhs except the sale of land to the 16 persons as mentioned above. Accordingly, he held that a sum of Rs. 15,84,500/- i.e. 50% of Rs. 31,69,000/- was explained and the rest Rs. 25,15,500/- remained unexplained and the same was added to the income of the assessee. 2.1 Aggrieved, with the assessment order, the assessee preferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , he was liable for penalty u/s 271 (1)(c) of the I.T. Act, 1961. Accordingly, he imposed a penalty of Rs. 14,90,000/- being 125% of the total tax on confirmed additions by the CIT(A)-ll, Dehradun. 2.3 Aggrieved with the penalty order, the Assessee appealed before the ld. CIT(A) who vide his impugned order dated 27.2.2015 has allowed the appeal of the Assessee by observing that there has not been any concealment of income by the assessee, in the sense that the assessee has not tried to show any taxable income as non-taxable and there has not been any inaccurate particulars of income filed, in that the assessee has not claimed any income as anything other than what it is and accordingly held that it does not appear to be a fit case for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icate that there was a transfer of the plot within the meaning of section 2(47) of the Act at the time signing of the agreement. The AR further submitted that apart from this all the facts were before the AO and no concealment of income could be alleged to have been committed on the part of the Assessee and neither had any inaccurate particulars of income been furnished. The AR also placed reliance on the findings of Ld. CIT(A) in this regard. 5. We have heard the rival submissions and perused the material on record. The findings of the Ld. CIT(A), while deleting the penalty in dispute are contained in para no. 13, 14 & 15 of the impugned order, and the same are being reproduced hereunder for ready reference:- "13. The facts that are cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e land. There is however, a circumstantial evidence that would indicate that the money that was received, was on account of the sale of the agricultural land and that is the value as stated in the agreement for sale. The agreement was concluded at Rs. 82 lakhs and the land is seen to have been transferred at Rs. 31,69,000/- as per the sale deeds. It is inconceivable that the value of land would fall so drastically within the space of 6 to 8 months without some major defect in title of the land being detected leading to speculative buy or some major crisis in the family of the seller resulting in distress sale. The absence of these would indicate that infact the land was transacted at the price given in the agreement for sale but the sale co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culars of income filed, in that the assessee has not claimed any income as anything other than what it is. In the circumstances, it does not appear to be a fit case for the imposition of penalty u/s 271(1)(c). The penalty is, therefore, deleted." 5.1 Ld. Sr. DR at the time of arguments before us could not point out any factual inaccuracy in the findings recorded by the Ld. CIT(A). Ld. Sr. DR also could not substantiate his arguments with cogent reasoning that the assessee had either concealed his income or furnished inaccurate particulars of income. It is very much evident that the relevant details were very much before the AO at the time of assessment proceedings. We also note that ITAT, Delhi Bench in ITA No. 3680/Del/2012 (AY 2005-06) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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