Principal Commissioner Of Income Tax 2 v. Sanjay Suvalal Jaiswal

C/TAXAP/284/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 284 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 2 Versus SANJAY SUVALAL JAISWAL ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIand HONOURABLE MR.JUSTICE B.N. KARIA Date : 04/04/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 09.10.2017 raising following question for our consideration:Appellate Tribunal dated 09.10.2017 raising following question for our consideration: “Whether the Appellate Tribunal has erred in law and on facts in holding that CIT(A) has rightly deleted the penalty levied by the Assessing Officer u/s. 271(1)(c) of the Act amounting to Rs. 63,47,000?” 2. The issue pertains to penalty imposed by the Assessing Officer under section 271(1)(c) of the Act which was deleted by the Commissioner (Appeals) and such appellate order was confirmed by the Tribunal.under section 271(1)(c) of the Act which was deleted by the Commissioner (Appeals) and such appellate order was confirmed by the Tribunal. 3. The Tribunal, in the impugned judgement, noted that the assessee had sold four pieces of land which resulted into long assessee had sold four pieces of land which resulted into long term capital gain of Rs. 8.58 crores (rounded off). Out of this amount, the assessee had claimed exemption for an amount of Rs. 4.70 crores (rounded off) under section 54F and B of the Act. During the assessment proceedings, the assessee withdrew such claim. He pointed out that after selling the land for Rs. 8.70 crores, he proposed to construct a bungalow out of such funds. For such purpose, he had executed a registered agreement to sale dated 25.09.2009 with the land owners to purchase a land for a sale consideration of Rs. 2.81 crores. Six cheques totaling to Rs. 2.81 crores were handed over. The agreement provided that after presenting the first cheque for a sum of Rs. 11 lacs, the vendor would get the land acquired of all encumbrances. However, since the vendor failed to do so, the entire deal fell through. The assessee pointed out that since the registered agreement to sale was executed on 25.09.2009, he had made a claim under section 54F of the Act. Subsequently, however, as the events developed, the deal did not go through. The assessee therefore, had withdrawn the claim during the assessment proceedings itself. It was in view of such facts the Tribunal confirmed the order of Commissioner of Appeals deleting the penalty. 4. We find no reason. No question of law arises. Tax Appeal is dismissed. dismissed. (AKIL KURESHI, J) JYOTI V. JANI (B.N. KARIA, J)