9911796707
TMI Blog2024 (10) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... Whereas the CIT(A) on the land development expenses claim has granted partial relief to the extent of 25% of the claim and sustained @75% - In the penalty proceedings, AO has issued a show cause notice dated 20.01.2020 and A.O observed that since the assessee has not filed any explanations and the assessee has furnished the inaccurate particulars of income has levied penalty. Prima facie, it is clear that the assessee has complied with the notice and filed the submissions on 28-01- 2020 before the penalty order is passed. We considered the facts that the assessee is dealing with the farmers in acquisition of lands being a unorganized market and claiming land development expenses paid from the period 1995 to 2005, the assessing officer has m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to ₹ 11,99,227/-. (b) Your appellant prays that, on the facts and circumstances of the case, the Assessing Officer may be directed to delete penalty levied u/s 271(1)(c) of the Act amounting 11,99,227/- 3. The appellant craves leave to add, to alter to vary or to amend the above grounds of appeal. 2. The brief facts of the case are that, the assessee is an AOP and is engaged in the business as real-estate developer. The assessee has filed the return of income for the A.Y 2006-07 on 30.10.2006 disclosing a total income of Rs. 1,20,65,170/- and the return of income was processed under Section 143(1) of the Act. Subsequently the case was selected for scrutiny and notice under Section 143(2) and 142(1) of the Act are issued. In complian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot satisfied with the explanations and disallowed Rs. 15,00,000/-. On the Last disputed issue, the Assessing Officer found that the assessee has debited to Profit Loss Account an amount of Rs. 1,89,62,316/- towards payment to farmers for acquisition of land and the details were called. The assessee has filed the detailed reply supporting the claim of expenditure, but the A.O has dealt on the facts, submissions and judicial decisions and rejected the claim and made disallowance u/sec 40A(3) of the Act of Rs. 1,89,62,316/-. Finally the A.O has assessed the total income of ₹ 3,85,95,450/- and passed the order under Section 143(3) of the Act dated 31.12.2008. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned. Authorised Representative submitted that the CIT(A) has erred in confirming the levy of penalty, irrespective of the fact that the penalty cannot be levied on the methodology of accounting of land development expenses fallowed and was accepted by the authorities. Further the Ld.AR emphasized that the assessee in response to notice under Section 271(1)(c) of the Act dated 20-01-2020 has submitted the explanations along with the details on 28-01-2020 through E-Portal of the ITBA and the Assessing Officer has overlooked these submissions and observed that no explanations are filed by the assessee. The Ld.AR submitted that penalty provisions shall not be attracted , when part of land development expenses are disallowed on estimation bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of Rs. 56,34,244/- has granted partial relief to the extent of 25% of the claim and sustained @75% i.e Rs. 38,80,995/-.In the penalty proceedings , the Assessing Officer has issued a show cause notice dated 20.01.2020 and A.O observed that since the assessee has not filed any explanations and the assessee has furnished the inaccurate particulars of income has levied penalty. 9. Whereas the Ld.AR demonstrated the explanations along with the details filed on 28-01-2020 through E-Portal of the ITBA placed at Page 10 to 24 of the paper book and the Assessing officer has ignored the submissions and passed the order under Section 271(1)(c) of the Act dated 30.01.2020. Prima facie, it is clear that the assessee has complied with the notice an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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