Case Law Details

Case Name : ACIT Vs Sunland Metal Recycling (ITAT Mumbai)
Appeal Number : ITA NO.6454/Mum/2011
Date of Judgement/Order : 10/12/2014
Related Assessment Year :
Courts : All ITAT (6015) ITAT Mumbai (1835)

CA Prarthana Jalan

The brief facts relevant to the levy of penalty are that the assessee had transferred / sold office premises to its sister concern for a sale consideration of Rs. 1.55 crores. The Assessing Officer considered the full sale consideration as per stamp duty authority valuation at Rs. 2,00,08,000/- in accordance with the provisions of section 50C of Income Tax Act. Accordingly, the Assessing Officer made an addition to the Short term Capital Gain. Subsequently, the Assessing Officer initiated penalty proceedings u/s 271(1)(c) for levy of penalty against the addition made to the Short term Capital Gain and levied a penalty of Rs. 22,12,069/- being 100% of tax sought to be evaded, vide order dated 30.09.2010.

The assessee challenged the action of Assessing Officer before CIT(A). The CIT(A) has deleted the penalty by following the various decisions of this Tribunal on the point and held that there is no concealment of any particulars of income on the part of the assessee. Hon’ble tribunal has upheld the order of the Ld CIT(A) by observing as under –

“As it is clear that the assessee has disclosed all relevant details as well as documents in support of its computation of Short term Capital Gain by taking into consideration the actual sale consideration received by the assessee. The fact of actual sale consideration received by the assessee has not been disputed by the Assessing Officer but the addition was made simply by applying the deeming provisions of section 50C. Therefore, in view of the various decisions as relied upon by the Ld. Authorized Representative as well as by the CIT(A), we do not find any error in the  impugned order of CIT(A) in deleting the penalty levied u/s 271(1)(c).”

Assessee has relied on the following decisions :-

(i) Renu Hingorani Vs. ACIT (ITAT Mumbai)  – Appeal No. ITA no. 2210/Mum/2010

(ii) CIT Vs. Madan Theatres Ltd. ( Cal. HC) GA No. 684 of 2013, ITAT no. 62 of 2013

(iii) Shri Chimanlal Manilal Patel Vs. ACIT (ITAT Ahmedabad)- Appeal No. ITA no. 508/Ahd/2010

(iv) Shri C Basker Vs. ACIT  (ITAT Chennai)- ITA no. 997/Mds/2012

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