Pradipta Kumar Guha Vs. National Faceless Assessment Centre, New Delhi

Parties Involved

Facts Summary

The assessee, Pradipta Kumar Guha, furnished the return of income for AY 2017-18 declaring a total income of Rs. 10,91,33,380/-. He declared a long term capital gain of Rs. 10,67,49,040/- on the transfer of a portion of land and building to M/s. JMSW Infracom Pvt. Ltd under a collaboration agreement. The assessee received Rs. 14 crores and Rs. 2.75 crores as the value of the construction cost of floors. He claimed indexed cost of acquisition and improvement, applying indexation benefits to claim a deduction. During assessment proceedings, the Assessing Officer restricted the indexed cost to 45% of the property, resulting in an addition of Rs. 1,82,88,028/- to the long term capital gains. A penalty under Section 270A of the Income-tax Act was initiated for underreporting income due to misreporting, and a show cause notice was issued. The assessee replied to the notice, but the penalty was levied. The Assessing Officer's action was upheld by the Commissioner of Income-tax (Appeals).…

Legal Issues

• 1. Whether the ld CIT(A) was justified in confirming the levy of penalty u/s 270A of the Act in the facts and circumstances of the instant case.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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