DHWANI MERCANTILE P.LTD,MUMBAI vs. ITO 2(1)(2), MUMBAI

This appeal filed by the assessee on 10.4.2016 is against the order of the CIT (A)-4, Mumbai dated 22.8.2013 for the assessment year 2010-2011.

The only issue raised in this appeal relates to the penalty of Rs. 6,05,700/-, which was levied by the AO u/s 271(1)(c) of the Act and confirmed by the CIT (A). 3. Before us, Ld Counsel for the assessee narrated the brief facts of the case and submitted that during the assessment proceedings, AO noticed that the assessee sold a property for a sum of Rs. 7,63,93,000/-. However, AO considered the sale consideration to the extent of Rs. 6.5 Crs. Invoking the provisions of section 50C of the Act, AO referred the property to the DVO who determined the price at Rs.6,69,60,192/-. AO quantified the difference of Rs. 83,83,499/- and restricted the short term capital loss to the same against the claim of Rs. 1,03,43,691/-. The excess claim disallowed by the AO works out to Rs. 19,60,192/-. This is the subject matter of penalty u/s 271(1)(c) of the Act.