Case Law Details
It is a fact that the addition has been made by the AO in the revisionary proceedings. The addition has been made on the basis of provisions of section 50C. It is not the case of the AO that the assessee has received consideration over and above than that declared in the sales deed. The AO has not disputed the consideration received by the assessee. The addition has been made on the basis of deeming provisions of section 50C. The assessee has furnished all the facts of sale, documents! material before the AO. The AO has not doubted the genuineness of the documents/details furnished by the assessee. Only because the assessee agreed to the additions because of the deeming provisions it cannot be construed to be filing of inaccurate particulars on the part of the assessee. The assessee agreed to addition on the basis of valuation made by the stamp valuation authority cannot be a conclusive proof that the sale consideration as per the sale agreement is seemed to be incorrect and wrong. In view of these facts we are of the considered view that penalty cannot be levied on the basis of deeming provision.
INCOME TAX APPELLATE TRIBUNAL , AHMEDABAD
ITA No.508/Ahd/2010 [Asstt.Year : 2006-2007]
Shri Chimanlal Manilal Patel Vs. ACIT
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Levy of tax itself is on presumption that the market value of the property is more than what is stated in the sale deed and not on the ground that the assessee /vendor has received more consideration than what is stated in the document and penalties are levied on presumptions of income and expecting all the citiznes to pay penalties also on presumptions of incomes, then there is no need for this big voluminous, not possible to understand by a common man, waste of money and presume every man who have money to pay tax and interest and penalties and collect, there solves all the problems.