Assessee is an individual and has income from partnership firm, interest on fixed deposits. The assessee has filed the return of income for A.Y 2015-16 wherein the income on account of LTCG on sale of agricultural land and interest on savings bank account was remained to be disclosed in the return of income. Therefore assessee submitted a letter before the AO that he was under a bonfide belief that the land being agricultural land situated outside 8 kms from the local authorities, therefore has not offered the income form sale of said land in the return of income. After coming to knowledge that the aerial distance of the said land is less than 8 kms and therefore an asset is a capital asset, however, since the time limit for filing revised return was not available, assessee submitted a letter to the AO that he voluntarily wants to offer the said income and submitted revised computation.

However, the AO has not appreciated the submission and levied penalty 271(1)(c) on the following grounds:

1. The claim of the assessee about voluntarily offering the capital gains is an after thought decisions

2.Since the assessee is guided by a CA, he must have taken advise before filing the return.

3. Provision of the Act are very clear on the issue on how to calculate the distance for situation of agri land from municipal limits, the assessee has very little choice choice to get confused and not offering CG on sale of such land.

4. Had there been no scrutiny, the assessee would never had offered the CG for Tax .

CIT(A) confirmed the levy of penalty on the ground that it cannot take up plea that all the income was offered voluntarily and cannot take the shelter of ignorance and oversight.

The assessee has filed an appeal before ITAT.

Please Guide.