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2017 (8) TMI 653 - ITAT KOLKATAPenalty u/s 271(1)(c) - treating a loss claimed as normal business loss as a speculative loss - whether the disallowance of assessee’s claim for set off of share trading loss against other income by treating the same as speculation loss as per Explanation to Section 73 of the Act will attract the penalty under section 271(1)(c)? - Held that:- This issue is squarely covered in favour of the assessee by the various judicial pronouncements cited by the ld. counsel for the assessee including those which have been relied upon by the ld. CIT(Appeals) in his impugned order while cancelling the penalty imposed by the Assessing Officer under section 271(1)(c). In one of such cases, namely CIT –vs.- SPK Steels Pvt. Limited [2004 (1) TMI 21 - MADHYA PRADESH], it was held that penalty under section 271(1)(c) was not exigible in respect of disallowance of assessee’s claim for set off of share trading loss by treating the same as speculative in nature as per Explanation to Section 73 on the basis of preliminary details furnished by the assessee along with the return of income as the assessee could not be said to have filed inaccurate particulars or concealed particulars of his income, which was chargeable to tax. The penalty imposed by the Assessing Officer under section 271(1)(c) was not sustainable as mere treatment of business loss as speculation loss by the Assessing Officer did not automatically warrant inference of concealment of income and there was nothing on record to show that in furnishing its return of income, the assessee had either concealed its income or had furnished any inaccurate particulars of income. See CIT –vs.- Auric Investment & Securities Limited [2007 (7) TMI 276 - DELHI HIGH COURT ] Thus no infirmity in the impugned order of the ld. CIT(Appeals) cancelling the penalty imposed by the Assessing Officer under section 271(1)(c) - Decided in favour of assessee.
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