Penalty u/s 271(1)(c ) cannot be imposed on account of deeming fiction u/s. 50C

The assessee sold the property at a sum of Rs. 2,51,50,000/- For the purpose of stamp duty, however, the value was estimated at a sum of Rs. 5,19,77,000/- and on that basis the stamp duty was realized. During the assessment, it was found that the assessee had disclosed the sale price at a sum of Rs. 2,51,50,000/-. The Assessing Officer fixed the sale price at a sum of Rs. 5,19,77,000/- and started proceedings under Section 271(1)(c). Penalty for a sum of Rs. 30,09,989/-was imposed.

Mr. Niaumuddin, learned Advocate appearing for the Revenue, contended that the assessee had a choice to dispute the valuation on the basis of the deemed value, but the assessee did not take that opportunity. The assessee had a choice or he could have litigated. The fact remains that the actual amount received was offered for taxation. It is only on the basis of the deemed consideration that the proceedings under Section 27 1(c) started. The revenue has failed to produce any iota of evidence that the assessee actually received one paise more than the amount shown to have been received by him.

We are, as such, of the opinion that there is no scope to admit the appeal since the same does raise any question of law, substantial or otherwise. The appeal is, therefore, rejected.

IN THE HIGH COURT AT CALCUTTA

Special Jurisdiction
[Income Tax]

ORIGINAL SIDE

GA No. 684 of 2013 ITAT No. 62 of 2013

C.I.T.KOL-IV

Versus

MADAN TEATRES LTD.

BEFORE: