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TMI Blog2024 (12) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... e to show that it is a case of misreporting of income. If ld. AO is levying the penalty by invoking Section 270A (9), then it is incumbent upon the AO to specify under which limb of Section 270A (9) he is initiating or is levying the penalty for misreporting of income. Penalty u/s 270 A is not automatic or adjunct to any addition made by the AO. Misreporting has to be established and onus is on the AO to give finding as how it amounts to misreporting under the clauses of sub section (9) of section 270A. As assessee had duly stated all the facts and stated that he was under a bonafide belief that the only property which he has purchased in his name (alongwith his father) on transfer of capital asset was the only property which was owned by h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains u/s. 54F. 4. In response to the show-cause notice assessee stated as under:- The property at Flat 1501, Dream Wings is received by assessee Mr. Prathamesh Khot on the death of his mother Late Smt. Veena Vivek Khot through WILL and is not purchased by the assessee. The property at Regency Nirman Ltd, Titwala is purchased by Mr. Vivek Khot jointly with Mr. Prathamesh Khot on 27.02.2015. In view of the above, the assessee is having only one property other than Flat 1801 at the time of transfer/sale of jewellery (i.e long term capital asset), hence the exemption benefit u/s exemption benefit u/s 54F shall not be denied to the assessee. 5. However, the ld. AO after quoting the relevant provisions of Section 54F held that the exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om Imposition of Penalty u/s 270A Sr. No. Particular Particular 1 Returned Income 29,66,890 2 Assessed Income as per order dated 07.04.2021 48,05,332 3 Date of Notice of Demand 07.04.2021 4 Amount of Tax demand 5,30,372 5 Details of Payment of Tax as mentioned below 5,30,372 1.Challan -1 BSR 6910333 Date 20/04/2021Challan No.50322 Amount Paid Rs. 80,372 2.Challan -2 BSR 6910333 Date 19/04/2021Challan No.50096 Amount Paid Rs. 2,50,000 3.Challan -3 BSR 6910333 Date 17/04/2021Challan No.50074 Amount Paid Rs 2,00,000 7. Assessee had also applied for immunity before the ld. AO as per Section 270AA but it was beyond period of one month. It was further stated that assessee had paid the taxes alongwith interest and has not filed any appeal, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be available if the assessee owns more than one residential house other than new asset on the date of transfer of original asset. The assessee did not have any house in his own name and had received on the demise of his mother as inheritance and if assessee had made a claim for exemption from capital gain for a property purchased by him alongwith his father through his own funds and claimed deduction u/s 54F which fact was duly reported, then same cannot be held that it is a case of underreporting of income in consequence of misreporting. Clause (9) has various instances wherein it is treated to be a misreporting of income. The ld. AO has not mentioned as to which of the clauses of Sub-Section (9) is applicable. For the sake of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and stated that he was under a bonafide belief that the only property which he has purchased in his name (alongwith his father) on transfer of capital asset was the only property which was owned by him, and therefore on purchasing this property he can claim exemption u/s 54F. The other property which was bequeathed to him after demise of his mother and came as inheritance belonged to his mother and not him. On such bonafide belief and when this fact has been duly stated and reported, then where is the question of misrepresentation or suppression of fact. At best it is an inference of AO on interpretation of statute and not something he has found out any suppression of facts on his own or by any inquiry. Thus in this case, it cannot be held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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