The Commissioner Of Income Tax, Faridabad v. Shri Sadhwa (Huf

ITA No. 248 of 2008 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 248 of 2008 Date of Decision: 10.8.2010 The Commissioner of Income Tax, Faridabad ....Appellant. Versus Shri Sadhwa (HUF) ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant. AJAY KUMAR MITTAL, J. 1.The Assessing Officer having made an addition in theincome returned by the assessee on account of capital gains arisingfrom sale of agricultural land initiated proceedings for penalty underSection 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”) andimposed a penalty of Rs.37,50,780/- which was set aside on appeal bythe CIT (A). The Tribunal upheld the order of the CIT (A). The revenuehas filed this appeal under Section 260A of the Act claiming thefollowing substantial question of law:- “Whether on the facts and circumstances of the case,the Tribunal was justified in deleting the penaltyimposed u/s 271(1)(c) at Rs.37,50,780/-?” 2. This Court while deciding ITA No. 247 of 2008 [The ITA No. 248 of 2008 Commissioner of Income Tax, Faridabad v. M/s Shri Sadhwa(HUF)] has held that no taxable capital gains arose on the sale of theagricultural land. In such a situation question of concealment of incomedoes not arise and, therefore, no penalty was exigible. 3.Accordingly, no substantial question of law arises in thisappeal. The appeal is dismissed. (AJAY KUMAR MITTAL) JUDGE August 10, 2010gbs (ADARSH KUMAR GOEL)JUDGE