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2019 (12) TMI 305 - ITAT JAIPURPenalty u/s 271(1)(c) - false claim of exemption u/s 10(38) towards long term capital gain (LTCG) on sale of shares - HELD THAT:- There is no dispute that in the assessment proceedings assessee accepted the fact that the transaction is not genuine and offered the income to tax. In the penalty proceedings, the assessee has contended that the addition made by the AO would not ipso facto attract the provisions of section 271(1)(c) - Assessee has submitted that the assessee produced all the relevant evidence in support of the claim. All these evidences filed by the assessee are not free from manipulation or creating self serving documents. The assessee has not filed a single piece of evidence which can be verified independently and from independent source. There is no dematerialization of the shares and even the return of income for the assessment year 2013-14 was filed only on 23.03.2014 after the alleged transaction of sale of shares. Therefore, the said return of income for the assessment year 2013-14 and showing the shares in the balance sheet will not help the case of the assessee as the said return was filed belatedly only after the alleged transaction of sale. Hence assessee has not produced any tangible material which can be verified independently and free from any manipulation, the same will not constitute a reasonable and bonafide explanation in terms of section 273B. As regards the legal objection raised by the assessee regarding the validity of order passed under section 271(1)(c), it is a clear case of furnishing inaccurate particulars of income by the assessee when the assessee has claimed the long term capital gain exempt under section 10(38) and subsequently this claim of the assessee was found to be wrong. AO in the penalty order has given a definite finding in para 5.2 of the penalty order that the assessee has furnished inaccurate particulars of income and penalty under section 271(1)(c) is leviable. Accordingly, do not find any merit or substance in the legal ground raised by the assessee.
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