USHA AGRO PRODUCTS & PROPERTIES P.LTD,MUMBAI vs. ITO WD 5(3)(3), MUMBAI

The present appeal has been preferred by the assessee against the order dated 20.03.2013 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2009-10.

The assessee in this appeal has agitated the levy of penalty under section 271(1)(c) of the Act. At the outset, the Ld. A.R. of the assessee has stated that the impugned penalty in this case has been levied on account of addition made under section 50C of the Act taking the sale consideration of the land sold by the assessee as per the stamp valuation authority. It is apparently neither a case of concealment of particulars of income nor of furnishing of inaccurate particulars of income. The capital gains in this case has been assessed at a higher rate because of the applicability of the provisions of section 50C of the Act. The issue is squarely covered by the decision of the Hon’ble Jurisdictional Bombay High Court in the case of “CIT vs. M/s. Fortune Hotels and Estates P. Ltd. (Bom) (H.C.) in Income Tax Appeal No.1164 of 2012 vide order dated 26.09.14.

In the result, the appeal of the assessee is hereby allowed and the penalty imposed by lower authorities under section 271(1)(c) of the Act is hereby ordered to be deleted.