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2014 (1) TMI 1178 - ITAT MUMBAIPenalty u/s 271(1)(c) - Held that:- Further verification has not been made by the AO from the Registrar of Companies as to whether the shares have been transferred or not - Merely because they are off market transactions it cannot be concluded that they are non-genuine transactions - Therefore the Tribunal concluded that the transactions are genuine - The assessees miserably failed to prove that they have been traded in Stock Exchange - Being a managing director of the company ignorance of fact cannot be assumed - The assessees were given sufficient opportunity before levying penalty - The AO has applied his mind to the issue of levying of penalty, for furnishing inaccurate particulars by the assessees herein, for making a claim of exemption under section 10(38) of the Act - The Tribunal had also not taken into consideration the fact that it is not one solitary transaction but the transactions of several individual family members and it is difficult to believe that none of them have ever thought of verifying as to whether STT was paid or not and in particular a Managing Director of a listed company can be assumed to know that transactions not carried out in Stock Exchange are liable to tax under the head ‘capital gains' since no STT is payable and the assessees cannot plead ignorance year after year - Following Zoom Communication P. Ltd [2010 (5) TMI 34 - DELHI HIGH COURT] - The assessees herein have not proved the bonafides of making a wrong claim which amounts to furnishing of inaccurate particulars of income - Decided against assessee.
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