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TMI Blog2017 (7) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the master Trust Bank of Japan, a foreign institutional investor, registered with Securities Exchange Board of India. During the year under consideration, the Assessee has earned long term capital gain as well as long term capital loss on purchase and sale of shares. While computing the total income, the Assessee did not set off long term capital loss of Rs. 80.64 crores from long term capital gain of Rs. 697.70 crores, which was exempt under Section 10 (38) of the Income Tax Act. The Assessee in it's return had put a note reserving his rights to carry forward the long terms capital loss of Rs. 80.64 crores. The Assessing Officer found that the said claim of the Assessee to carry forward long term capital loss is not admissible and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the Assessee has given incorrect particulars, or has concealed the particulars, he makes himself liable to be proceeded under Section 271. The further contention is that the Assessee is not in a position to substantiate and offer a plausible explanation, as such the Assessing Officer had rightly imposed the penalty. The learned counsel also relies on the provisions of Section 271(1)(c) to contend that where the amount is added or disallowed in computing total income or loss of an assessee in any order of assessment, even in case of loss, not being shown, the initiation of penalty proceeding is permissible. The Tribunal has failed to consider the said aspect. Reliance is placed on the judgment of the Apex Court in Commissioner of IncomeT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfaction of the ingredients as laid down in the said section. In the present case, it appears that the Assessee had disclosed in its return the loss of Rs. 80.64 Crores sustained by him and further in the return, note was also given that it reserves its right to carry forward the loss. The same was made by the Assessee keeping in mind its interpretation of Section 10(38) of the Income Tax Act. According to the Assessee, the Assessee bonafidely believed that under Section 10(38), the loss is not required to be considered and only income is required to be considered relying on the phraseology of the said provision. 8 In the present matter, we are not testing the interpretation on the provisions of Section 10(38). However, suffice it to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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