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2015 (6) TMI 811 - GUJARAT HIGH COURTPenalty u/s.271(1)(c) - whether claiming speculation loss as business loss deliberately amount to filing of inaccurate particulars and adjusting the same against income from other sources, whereas the clause (d) inserted by the Finance Act, 2005 under sub-section (5) of section 43 is applicable w.e.f 01.04.2006 i.e. from A.Y. 2006-07 conclusively proves that the derivative transactions are in the nature of speculative transactions till A.Y. 2005-06 - ITAT deleted penalty levy - Held that:- While submitting the return of income, the assessee claimed/treated the loss from derivative transactions as normal business loss. However, the AO did not accept the same and treated the same as speculative in nature and therefore, disallowed the same. Therefore, it was a bonafide claim made on behalf of the assessee which was not accepted by the AO. All particulars in respect of the loss were found to be correct. Only point of contention was that the appellant had treated loss from derivative transactions as normal business loss whereas the AO held it to be speculative in nature. It is a case of bonafide claim in respect of an item where the law was not very clear, this is evident from decisions of various tribunals quoted by the appellant which were in its favour. This is a case of difference of opinion and not a case of mala fide claim of wrong deduction. Ratio of decision of Hon'ble Supreme Court in the case of Reliance Petroproducts (P.) Ltd. [2010 (3) TMI 80 - SUPREME COURT] wherein held that mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee is squarely applicable to the facts of the case - Decided in favour of assessee.
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