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TMI Blog2016 (4) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturing of GLS Lamps and the other transaction was relating to the sale and purchase of shares which resulted into short term capital loss. In the present case, it is not brought on record to substantiate that the loss related to the sale and purchase of shares was assessed as a business loss or adjusted against the regular business income and that the shares sold by the assessee were kept as a stock-in-trade. Therefore, the provisions of Section 44AB of the Act were not applicable to the transaction relating to sale & purchase of shares and the penalty u/s 271B of the Act levied by the AO and sustained by the ld. CIT(A) was not justified, therefore, the same is deleted. - Decided in favour of assessee - ITA No. 4996/Del/2013 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 271B of the Act and levied the penalty of ₹ 45,458/-. 4. Being aggrieved the assessee carried the matter to the ld. CIT(A) and submitted that it was not a case where absolutely no compliance had been made u/s 44AB of the Act but was a case where compliance u/s 44AB of the Act could not be made with respect to one segment of business, therefore, provisions of Section 271B of the act were not applicable. It was further stated that the assessee had considered the sale and purchase of shares as transaction involving capital assets and therefore, it remained outside the purview of tax audit. 5. The ld. CIT(A) after considering the submissions of the assessee observed that no detail had been filed by the assessee with respect to pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levied by the AO and sustained by the ld. CIT(A) u/s 271B of the Act was not justified. 7. In his rival submissions the ld. DR strongly supported the orders of the authorities below. 8. We have considered the submissions of both the parties and perused the material available on the record. In the present case, it appears that the assessee got his accounts audited relating to regular business of manufacturing of GLS Lamps. However, no audit was got conducted in respect of the transaction relating to sale and purchase of shares. In the instant case, this contention of the assessee that the transaction relating to purchase and sale of shares resulted into short term capital loss and the transaction was involving capital assets, is not re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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