Section 271F penalty not applicable if Income was below taxable limit

Kanhaiya Lal Lalwani Vs ITO (ITAT Jaipur) It is noted that the cost of acquisition of plot as per the assessee was Rs. 555/- purchased on 16-04­-1999 and thereafter addition/ improvement of Rs.3,41,000/- was made. In my view, if these benefits were allowed to the assessee then in that eventuality the capital gain arose on the sale of immovable property could have been below taxable limit. It is noteworthy to mention that the provisions of Section 273B of the Income Tax Act, 1961 categorically mentions that penalty u/s 271F is not leviable in case the assessee proves that there was a reasonabl...