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TMI Blog2024 (9) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... t stood levied on the assessee. As we have already held that the denial of long-term capital loss per se is not sustainable in the eyes of law, there cannot be any alleged furnishing of inaccurate particulars thereon. In any event, this is only question of interpretation of law of the relevant provisions of the Act as all the details for determination of long-term capital loss either for its acceptance or denial are already available on record before the AO in the income tax computation sheet itself. Hence, it cannot be construed as furnishing of inaccurate particulars of income by the assessee. At best, it could be construed only as an incorrect claim. Hence, no penalty could be levied on an incorrect claim. Reliance in this regard is plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t steel bars, trading in iron and steel, acting as brokerage and commission agents and deriving income thereon along with income from other sources. The original return of income was filed by the assessee company on 27.09.2015 declaring total taxable income of Rs. 11,000/- and carrying forward long-term capital loss of ₹ 2,81,47,885/-. This return was revised on 10.11.2017 with the same figures. The ld AO noticed that the assessee company was holding 65,450 equity shares of M/s Kansil Alloys Pvt Ltd, hereinafter called Investment Company as on 20.02.2015 on that date the assessee company was offered to tender up 62500 equity shares held as investment in the Investee Company as per the buy back offer given by the investee company to it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- The assessee company filed its ITR to the best of its knowledge. Section 115QA was introduced recently w.e.f 01- 06-2013, the assessee company had no knowledge of the same. The assessee company has no objection if its income is assessed in the light of provisions of section 115QA read with Section 10(34A) as applicable in the current assessment year. Under Section 115QA read with Section 10(34A) the provisions of Section 46A and Section 18 does not apply to the assessee therefore the negative, income of Rs 1,15,15,625/- is exempt negative income u/s 10(34A) and same is not allowable to carried forward for adjustment with any other Income in any of the subsequent years. Since in the case of the assessee company, the buyback of its investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong-term capital loss of ₹ 2,81,47,885/- after indexation which the company intended to carry forward. According to the ld AO, since the income arising to assessee/ shareholder on account of buy back of shares of the company as referred to in Section 115QA is exempt u/s 10(34A) of the Act, therefore, any loss arising thereon would also not be allowable to the assessee company. The assessee had pleaded ignorance of the new provision of section 115QA of the Act introduced in the statute w.e.f. 01.06.2013. This ignorance of law was not considered as an excuse by the lower authorities and penalty ultimately stood levied on the assessee u/s 271(1)(c) of the Act for furnishing inaccurate particulars of income. 8. Let us now examine the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 10(34A) also consequentially would not have any application. Hence, the very basis of denial of carry forward long-term capital loss per se made by the ld AO is legally incorrect. Since the assessee had not challenged the same in the quantum proceedings, the penalty u/s 271(1)(c) of the Act stood levied on the assessee. As we have already held that the denial of long-term capital loss per se is not sustainable in the eyes of law, there cannot be any alleged furnishing of inaccurate particulars thereon. In any event, this is only question of interpretation of law of the relevant provisions of the Act as all the details for determination of long-term capital loss either for its acceptance or denial are already available on record be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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