9911796707
TMI Blog2024 (5) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... to be genuine, however, did not bring any material of record to support its contention and straight away upon receipt of notice u/s 148 offered to tax the LTCG on the sale of shares of M/s. Action Financial Services (India) Ltd. There is also no material on record to show that the assessee subsequently again claimed the Long Term Capital Gain to be exempt. Since the additional income on account of the aforesaid Long Term Capital Gain was offered to tax only in response to the notice issued u/s 148 we agree with the findings of the lower authorities that the same is not voluntary but is consequential to the issuance of notice u/s 148 of the Act. In view of the above, we also do not find any merits in the submissions of the assessee that no p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d any inaccurate particulars of income. Thus, the levy of penalty of Rs. 90,922/- under section 271(1)(c) of the Act is not justified and the same may be deleted. 2. The NFAC failed to appreciate that the capital gains of Rs. 5,87,740/received on sale of shares of M/s. Action Financial Services (India) Limited was duly offered for tax by the assessee in the returns filed in response to the notice u/s 148 of the Act and the same was duly accepted by the Ld. A.O. while finalizing the assessment proceedings. Thus, the levy of penalty on the same is not justified and the same may be deleted. 3. The NFAC further, failed to appreciate that the income of Rs. 32,02,220/- declared by the assessee in the return of income filed in response to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 10/12/2019 passed u/s 143(3) read with section 147 of the Act the total income of the assessee was assessed at the returned income. 5. Meanwhile, penalty proceedings u/s 271(1)(c) of the Act were initiated, and notice u/s 274 read with section 271(1)(c) of the Act was issued to the assessee. In response thereto, the assessee submitted that he has not obtained accommodation entry and the transaction in shares of M/s. Action Financial Services (India) Ltd. was a genuine transaction. The assessee further submitted that he has filed the return of income, pursuant to the notice issued u/s 148 of the Act, offering the capital gain of Rs. 5,87,740/- received on the sale of shares of M/s. Action Financial Services (India) Ltd, to tax, which has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/, after claiming exemption of Long Term Capital Gain u/s 10(38) of the Act on sale of shares of M/s. Action Financial Services (India) Ltd. However, upon receipt of notice u/s 148 of the Act on the basis that M/s. Action Financial Services (India) Ltd is a penny stock listed on the Bombay Stock Exchange and has been used to facilitate the introduction of unaccounted income of the assessee in the form of exempt Long Term Capital Gain, the assessee filed return of income declaring a total income of Rs. 32,02,220/- offering the Long Term Capital Gain of Rs. 5,87,740/-, arising from the sale of shares of M/s. Action Financial Services (India) Ltd, to tax. During the hearing, the learned AR submitted that though the purchase and sale transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot voluntary but is consequential to the issuance of notice u/s 148 of the Act. In view of the above, we also do not find any merits in the submissions of the assessee that no penalty can be levied in the present case since the returned income and assessed income are same, as the only basis of issuance of notice u/s 148 of the Act was the alleged bogus Long Term Capital Gain claimed as exempt by the assessee in the original return of income and which was subsequently offered to tax by the assessee in response to notice issued u/s 148 of the Act. Accordingly, we find no infirmity in the impugned order in upholding the levy of penalty u/s 271(1)(c) of the Act, and therefore, the same is upheld. As a result, the grounds raised by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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