VENKATESH MURTHY Vs. INCOME TAX OFFICER WARD

JUDGEMENT

(1.) THESE two Income Tax Appeals, filed under Section 260 -A of the Income Tax Act, 1961, (for short the Act ), arise from the common order dated 18.05.2007, whereby, ITA No.836/2006 pertaining to the Assessment year 2003 -04, has been dismissed by the Income Tax Appellate Tribunal, Bangalore Bench - B (for short the Tribunal ). The Tribunal upheld the Long Term Capital Gain Tax (for short LTCG ) and denied exemption under Section 54 -F of the Act and so also penalty under Section 271(1)(c) of the Act.

(2.) BOTH the appeals before the Tribunal were filed by the appellant -assessee against two different orders passed by the 1st Appellate Authority, both dated 11.08.2006. By the first order, the Appellate Authority upheld the order of the Assessing officer, whereby, he brought capital gain of Rs.5,15,970/ - to LTCG tax and initiated penalty proceedings under Section 271(1)(c) separately. In view thereof, a separate order imposing penalty under Section 271(1)(c) came to be passed by the Assessing Officer vide order dated 30.05.2006. By this order, he imposed penalty equal to the amount of LTCG tax. That order was also carried in appeal, which the 1st Appellate Authority confirmed vide order dated 11.08.2006 in ITA No.64/CIT(A) -II/2006 -07.

(3.) MR .Shankar, learned counsel appearing for the appellant -assessee, at the outset, submitted that, if he succeeds in satisfying this Court for setting aside the order of penalty passed under Section 271(1)(c) of the Act, he has instructions not to press the appeal, rejecting his claim for exemption under Section 54 -F of the Act, though according to him, he has good case on merits.