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TMI Blog2024 (10) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the return of income which attracts the penal provisions as per section 271(1)(c). As in response to the show cause notices issued by the Ld. AO, the assessee has neither filed any explanation nor appeared before the Ld. Revenue Authorities during the penalty proceedings. It is also found that the assessee has not furnished any reasonable cause either for non-filing of return of income or for non-appearance or non-furnishing of explanation during the assessment or penalty proceedings. Assessee has not filed her return of income u/s 139(1) of the Act but has filed in response to the notice U/s. 148 of the Act without considering the provisions of section 50C of the Act, which in our considered opinion amounts to concealment of income. Ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entative of the assessee submitted the computation of total income of the assessee before the Ld. AO on 28/11/2018. On perusal of the same, the Ld. AO observed that the assessee did not consider the sale consideration u/s. 50C of the Act. The Ld. AO further noted that the cost of construction and deduction u/s. 54G was wrongly claimed by the assessee. Therefore, the Ld. AO considered the sale consideration u/s. 50C of the Act and disallowed the excess cost of construction deduction u/s. 50G of the Act. Accordingly, the Ld. AO passed the assessment order on 10/12/2018 determining the total income at Rs. 15,63,290/ -. Further, penalty proceedings u/s. 271(1)(c) of the Act were also initiated for concealment of income. Against the addition mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring. 3. At the outset, the Ld. Authorized Representative [Ld. AR] argued that the provisions of section 50C of the Act was applied by the Ld. AO and hence it is only an estimation which does not attract the penalty proceedings u/s. 271(1)(c) of the Act. Further, the Ld. AR also submitted that the assessee has not concealed any income attracting the provisions of section 271(1)(c) of the Act. He therefore pleaded that the penalty amount of Rs. 2,82,897/- may be deleted. 4. On the contrary, the Ld. DR submitted that the assessee is a non-filer and has not filed her return of income for the impugned assessment year even though the assessee had taxable income. The Ld. DR further submitted that the assessee did not also furnish any explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w relied upon were carefully perused. The appellant has contended that the notice u/s. 271(1) is not valid because it has not been specified whether it was issued for concealment of income or furnishing inaccurate particulars of income and the specific item have not been ticked. However, it is seen from the penalty order that the penalty has been initiated for specific reason of concealment of income which is categorically mentioned in the order. Section 292B of the IT Act is relevant in the circumstances of any defect in the notice, if any, which reads as under: 292B. No return of income, assessment, notice, summons or other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale consideration is less than stamp value. But, the appellant did not follow the provisions of section 50C of the Act. The penalty order is self-explanatory itself needs no further explanation. It is pertinent to mention here that the first appeal preferred against the assessment order of the AO was dismissed by the first appellate authority confirming the decision of the AO by observing that there is no error in the computation of long term capital gains made by the AO in the assessment order. The appeal order is based upon various judgments and case laws favouring the decision of the AO. Hence, the case laws relied upon by the appellant in the written submission were found not tenable in view of the clear cut violation of section 50C o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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