Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1993-94 - Assessee filed its return of income by disclosing capital gains from sale of land - Assessee thereafter filed a revised return, wherein it claimed that capital gain from sale of land was exempt from tax being agricultural land, on basis of an advise received from MCD - Assessing Officer did not accept assessee's claim - On appeal, Commissioner (Appeals) allowed same - On revenue's appeal, Tribunal remanded matter to Assessing Officer - Thereafter matter was taken up on remand by Assessing Officer where assessee admitted that land was not agricultural land and surrendered its claim by not pressing matter any further and paying tax which was due - Notwithstanding that, Assessing Officer imposed a penalty upon assessee under section 271(1)(c) - Whether, since assessee acted bona fide on basis of an advise received from MCD that it was entitled to exemption, and there was nothing to suggest that assessee concealed its income, levy of penalty under section 271(1)(c) upon assessee was not justified - Held, yes Ms. Prem Lata Bansal for the Appellant. Satyem Sethi and Mau K. Siri for the Respondent. ORDER 1. The revenue is aggrieved by an order dated 16-9-2005 passed by the Income-tax Appellate Tribunal, Delhi Bench 'A', New Delhi in ITA No. 3887/Delhi/2004 relevant for the assessment year 1993-94. 2. The assessee had filed its return of income wherein it had disclosed a capital gain of Rs. 19,45,920 from the sale of land. Thereafter, the assessee filed a revised return wherein it claimed that the capital gain shown earlier was exempt from tax being agricultural land. This was on the basis of an advise received by it from the concerned Tehsildar as well as information received from the Municipal Corporation of Delhi. The Assessing Officer did not accept the withdrawal of capital gain. 3. The assessee then filed an appeal before the Commissioner of Income-tax (Appeals) which was allowed. 4. The revenue then took up the matter before the Tribunal and the matter was remanded on the file of the Assessing Officer…

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