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 the income returned by the assessee on account of capital gains arising from sale of agricultural land initiated proceedings for penalty under Section 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”) and imposed a penalty of Rs.37,50,780/- which was set aside on appeal by the CIT (A). The Tribunal upheld the order of the CIT (A). The revenue has filed this appeal under Section 260A of the Act claiming the following substantial question of law:- “Whether on the facts and circumstances of the case, the Tribunal was justified in deleting the penalty imposed 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 -2- Commissioner of Income Tax, Faridabad v. M/s Shri Sadhwa (HUF)] has held that no taxable capital gains arose on the sale of the agricultural land. In such a situation question of concealment of income does not arise and, therefore, no penalty was exigible. 3. Accordingly, no substantial question of law arises in this appeal. The appeal is dismissed. (AJAY KUMAR MITTAL) JUDGE August 10, 2010 (ADARSH KUMAR GOEL) gbs JUDGE