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TMI Blog2023 (1) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee that the company in which shares purchased is bogus company, she offered the entire income for taxation. Thus, in our considered opinion, it is not amount to concealment of income or furnishing of inaccurate particulars warranting levy of penalty under section 271(1)(c) - CIT(A) has rightly directed the AO to delete the penalty levied under section 271(1)(c) of the Act and we find no infirmity in the order passed by the ld. CIT(A). Appeal filed by the Revenue is dismissed. - I.T.A. No.3457/Chny/2019 - - - Dated:- 13-1-2023 - Shri V. Durga Rao, Judicial Member And Shri Manoj Kumar Aggarwal, Accountant Member For the Appellant : Shri P. Sajit Kumar, JCIT For the Respondent : Shri T. Vasudevan, Advocate ORDE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that the assessee had entered into contract with the brokers, got the shares and never expected that the Public Limited Company traded on Stock Exchange supposed to abide SEBI regulations, will do the manipulations in trading of shares and to buy peace and avoid further complications, paid the tax. The Assessing Officer has accepted the same and completed the assessment under section 143(3) of the Act dated 30.12.2016. 3. Subsequently, the Assessing Officer has initiated penalty proceedings under section 271(1)(c) of the Act and called explanation from the assessee as to why penalty cannot be levied. In response to the notice issued by the Assessing Officer, the assessee filed a letter dated 19.02.2017 and submitted that the assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulars and therefore, section 271(1)(c) of the Act has no application. 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. The assessee has purchased shares from M/s. Shree Shaleen Textiles Ltd. and claimed exemption under section 10(38) of the Act. The Assessing Officer has examined the issue in detail and came to a conclusion that the shares purchased by the assessee from a company, which was a bogus company, as per the investigation done by the Directorate of Investigations, Kolkata and Delhi. He also noted that the company has not done any business in the previous year and also in the assessment year under consideration. The assessee has purchased the shares from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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