SH.PAWAN ANAND,DEHRADUN vs. ITO, DEHRADUN
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Income Tax Appellate Tribunal, DELHI BENCH “DB” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI AVDHESH KUMAR MISHRA
आदेश /O R D E R
PER C.N. PRASAD, J.M.
This appeal is filed by the assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 28.02.2024 for the AY 2016-17 in sustaining the penalty levied u/s 271(1)(c) of the Act.
ITA No.33/DDN/2024
We have heard the rival contentions, perused the orders of
the authorities below. In this case, we noticed that an addition of
Rs.10,68,000/- was made while completing the assessment u/s
143(3) r.w.s. 147 of the Act, being the difference between the
stamp duty value and the actual sale consideration. The assessee
purchased a flat in Dehradun for an amount of Rs.21,67,410/- out of
which the sale consideration was Rs.20 lakhs and the stamp duty
and other legal expenses were Rs.1,67,410/-. However, the market
value as per the circle rate was Rs.30,68,000/- and therefore there
was a difference of Rs.10,68,000/- between the actual
consideration and stamp value and this amount was added as
undisclosed income of the assessee by the Assessing Officer while
completing the assessment. The Assessing Officer also initiated
penalty proceedings for concealed particulars of income and levied
penalty of Rs.2,93,083/-. On appeal the Ld. CIT(A) sustained the
penalty.
In our considered view the difference between the stamp
duty value and the actual sale consideration which was arrived on
account of deeming provision u/s 50C cannot be said to be
concealment of particulars of income. The assessee here neither
concealed his income nor the particulars of such income so as to
ITA No.33/DDN/2024
attract penalty u/s 271(1)(c) of the Act. Hence, we direct the
Assessing Officer to delete the penalty levied u/s 271(1)(c) of the
Act.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 23/05/2025
Sd/- Sd/- (AVDHESH KUMAR MISHRA) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23.05.2025 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI
