Penalty u/s 271(1)(c)

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CA Abhinav gupta (Querist)
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06 November 2014 i have constructed a building which is valued at rs 17 lakh by me but d.v.o valuation report value it at rs. 26 lakh. Now A.O. is imposing penalty under section 271(1)(c). is the penalty impoaition right..

Amol S Joglekar

Amol S Joglekar (Expert)
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06 November 2014 No. You can write to the A.O., that the valuation done by you is based on the ACTUAL and FACTUAL figures. So, there is no any lapse on the part of the assessee as to hiding the facts and hence the 271 (1) c) be dropped.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 November 2014 Penalty imposed on the basis of valuer's report regarding cost of construction is not valid –

Citation:-

1) DCIT Vs. JMD Advisors (P) Ltd 310 ITR 280 (Del-Trib).

2) CIT Vs. Apsara Talkies 155 ITR 303 (Mad).

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