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TMI Blog2011 (9) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... in on trading in shares was declared at Rs. 12,86,564/-. On going through the details of transactions, the AO noted that part of the transactions in shares were affected within a short period, i.e. even within 48 house. The AO, therefore, noted that the transactions were of business nature. The submissions made by the Assessee during assessment proceedings were not found tenable by the AO. The AO finally held that the income earned from the sales made within two days of the purchase of shares without physical delivery of the share is to be assessed as income from business instead from short term capital gain declared by the Assessee and also levied penalty Under Section 271(1)(c) of the Act. By the impugned order, the ld. CIT(A) confirmed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of claim is squarely covered by the decision of Hon'ble Supreme Court in the case of Reliance Petro Products, 322 ITR 158 (S.C.), wherein following was the precise observations: By any stretch of imagination, making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars . Accordingly, it was held that decline of Assessee's claim of interest against the loan utilized for making investment in tax free securities, will not amount to furnishing of inaccurate particulars so as to attract penalty Under Section 271(1)(c) of the Act. Hon'ble Supreme Court in this case after considering the proposition of law laid down in the case of Dilip N. Shroff - 291 ITR 519 (SC) and Dharmender Textile Processors - 306 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature and could not be adjusted against Assessee's normal income, accordingly the AO held that Assessee has furnished inaccurate particulars of income to the extent of making a wrong claim of share trading loss against the normal income and imposed penalty Under Section 271(1)(c) of the Act. The Hon'ble High Court held that mere treatment of business loss as a speculation loss by the AO did not automatically warrant inference of concealment of income, accordingly penalty was not leviable. 4. Recently, Hon'ble Punjab and Haryana High Court in the case of CIT v. The Shahabad Coop. Sugar Mills Limited (supra) observed that where the Assessee is found to have made wrong claim Under Section 80P and wrong claim of depreciation on gue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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