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2012 (3) TMI 467 - AT - Income TaxPenalty proceedings u/s. 271(1)(c) - sale proceeds offered under the head “Short Term Capital Gains” - additional income has come to light only as a result of the search action - Held that:- The assessees have shown one of the reasons for declaring the gain as Short Term Capital Gain in their returns filed u/s. 153A, deviating from their earlier declaration as Long Term Capital Gain in their original return filed u/s. 139(1) of the Act is that they were not sure of getting the third party confirmation, support and personal appearance of the brokers from whom the shares were purchased in April 2001. There is nothing on record to doubt such explanation of the assessees for showing the gain as Short Term Capital Gain in their return filed u/s. 153A to attract penal provision u/s. 271(1)(c ) of the Act. Under these circumstances, it cannot be inferred beyond doubt that the assessees had furnished inaccurate particulars of income in their original returns of income filed u/s. 139 of the Act declaring the sale proceeds of the shares as Long Term Capital Gain. We thus while setting aside the orders of the authorities below, direct the A.O to delete the penalty - Decided in favour of the assessee.
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