TMI Blog2014 (3) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee as a short term capital loss in the return of income - As per the provisions of section 94(7), the loss, if any, arising to the assessee on account of purchase and sale of securities or units, then such a loss has to be ignored if the securities has been sold or transferred within the period of three months. The Assessing Officer has calculated the period of three months on calendar basis which perhaps is correct - it cannot be held that the assessee has furnished any inaccurate particulars or concealed any income - the assessee’s belief or explanation cannot be held as wrong which was given during the course of quantum proceedings as well as penalty proceedings is not bonafide - thus, the order of the CIT(A) upheld – Decided ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 94(7), the assessee submitted as under: The transactions, if entered within 3 months then the provisions are attracted. In our case period with 3 months expire on 25th March 2004 and the 4th month starts from 26 3 04, thus the transaction is not entered within three months. Hence, the provisions of sec. 94(7) are not attracted. 3. The assessee s explanation, however, was not accepted on the ground that the redemption of all the units was done on 26th March 2004 which is within the period of three months from the record date of 26th December 2003. The period of three months ends only on 26 th March 2004, therefore, the provisions of section 94(7) gets attracted and, accordingly, the amount of Rs. 15,48,595 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the period of three months. He thus, strongly relied upon the order of the Assessing Officer. 7. The learned Counsel for the assessee, on the other hand, submitted that here the question is the calculation of the period and the assessee under a bonafide impression made the calculation of the period of three months from 26th December 2013 and from such date, the period of three months expires on 25th March 2004 and when the assessee sold the units of mutual funds on 26th March 2004, then clearly, the assessee was under a bonafide belief that the period of three months had expired by that time. On these facts, it cannot be held that the assessee is guilty of either concealment of income or furnishing of inaccurate particulars of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch 2004 is the 91st day. The Assessing Officer has calculated the period of three months on calendar basis which perhaps is correct. However, it cannot be held that the assessee has furnished any inaccurate particulars or concealed any income. Under these circumstances, it cannot be held that the assessee s belief or explanation which was given during the course of quantum proceedings as well as penalty proceedings is not bonafide. Hence, on these facts, we do not find any reason to deviate from the conclusion drawn by the learned Commissioner (Appeals) that penalty cannot be sustained in such case. Consequently, the order passed by the learned Commissioner (Appeals) cancelling the penalty is hereby sustained and the ground raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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