The Tax Publishers2020 TaxPub(DT) 3514 (Mum-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Though AO taxed profit on sale of shares as business income as against capital gain on sale of shares as declared by assessee, however, there was no concealment of particulars of income or furnishing of inaccurate particulars of income and therefore, no penalty could be levied under section 271(1)(c).

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars of income - Change of head of income by AO -

Assessee claimed long/short-term capital gain on account of selling and purchasing the shares but AO on account of voluminous transactions of the shares treated the same as business income and on account of change of head of income, levied penalty under section 271(1)(c). Held: Though finding of AO was confirmed by CIT(A) but in fact, there was no concealment of particulars of income or furnishing of inaccurate particulars of income. Accordingly, no penalty could be levied under section 271(1)(c).

Followed:Reliance Petroproduct v. CIT (P) Ltd. (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC)

REFERRED :

FAVOUR : in assessee's favour

A.Y. : 2012-13

INCOME TAX APPELLATE TRIBUNAL RULES, 1963

Rule 34(5)(c)

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