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2011 (1) TMI 1224 - AT - Income TaxCapital gain or business income - Sale of shares - Held that:- Assessing Officer gave a finding that the assessee was asked to submit proof of purchase and sale of shares, in response to which purchase note and sales note were filed. Thereafter, the assessee offered capital gains for taxation on August 29, 2008 by filing a letter to that effect - Thus, it transpires that the claim of the assessee has been rejected by treating the amount of Rs. 33,34,973 as income liable to be taxed under the head "Capital gains" and penalty proceedings have been initiated on this issue. According to our humble opinion, this amounts to recording a prima facie satisfaction that the assessee furnished inaccurate particulars of income - The assessee has furnished some explanation which is not found to be bona fide by us. The case of the Revenue also finds support from the decision in the case of Escorts Finance Ltd. In this case, the claim was made on the basis of the chartered accountant's certificate furnished in the prospectus. Yet, the court found that since the claim was prima facie inadmissible, the explanation of the assessee is not bona fide. In this case, the claim is not supported by any evidence. The explanation is also not based on any affidavit or declaration from the accountant - Following decision of Commissioner of Income-tax Versus ECS Ltd. [2010 (2) TMI 713 - Delhi High Court] - Decided in favour of assessee.
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