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2012 (6) TMI 134 - AT - Income TaxPenalty levied u/s 271[1][c] on capital gains on renunciation of right shares – The Assessee took a stand that no part of the aforesaid receipt was taxable because the cost of acquisition of rights shares cannot be determined and therefore it was not possible to compute capital gain – Held that:- The return of income is the only document where the assessee can furnish his particulars of income, whereas the appellant company has not disclosed the receipt of premium received on renunciation of rights in its return of income nor in the computation of income accompanied with the return of income - the entire consideration received by the assessee company on renunciation of right shares was shown under the head “Reserves & Surplus” without mentioning the nature of its constituents and as to how the same was exempt – As nothing was revealed in this regard by way of even a note to computation of total income chargeable to capital gains there is concealment or furnishing of inaccurate particulars on part of the assessee company. To reduce the afore said penalty levied u/s 271[1][c]- Held that:- AO has levied penalty which is @ 200 % of the tax sought to be evaded but while disposing off the appeal the ld CIT[A] has concluded that to levy penalty u/s 271[1][c] @ 100 % of the tax sought to be evaded on capital gains on renunciation of right shares - As the penalty levied by the AO has already been brought down to 100%, which is the minimum penalty u/s 271[1][c] of the Act no point to reduce it further – against assessee.
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