Rejection of claim raised in return of income ipso-facto not attract levy of penalty U/s. 271 (1) (c)

Brief of the case Assesse made a claim that income arising out from sale of agricultural land was capital gain exempt from tax. Revenue authorities and Tribunal brought said income to tax, treating it as ‘ business income ’, on ground that assesse was involved in business of sale and purchase of agricultural lands . A penalty order was also passed under section 271(1)(c) by revenue authorities for furnishing inaccurate particulars of income .High Court, however, confirmed view taken by Tribunal that claim raised by assesse in return, which was not accepted ipso-facto did not amount to furn...