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2012 (6) TMI 291 - AT - Income TaxPenalty u/s 271(1)(c) - foreign bank - dis-allowance of loss on ready forward transactions on ground of them being illegal - alleged concealment of income - Held that:- Dis-allowance made as speculative loss cannot be considered alone as concealment of income for considering the penalty u/s 271(1)(c) when the same amount can be set off to speculation profits as directed by the CIT (A) and the ITAT, the direction which was not complied by the Assessing Officer. Since all the particulars are furnished by assessee from out of the records and the Assessing Officer having not disturbed any of the computations as furnished by assessee, it cannot be stated that penalty was levied for furnishing inaccurate particulars. Also, at the relevant point of time, inspite of having the directions/circulars of the RBI, most of the Banks (not only the foreign banks but Indian scheduled banks including PSU Banks) were routinely and regularly involved in these transactions till the scam broke out. It cannot be stated that the assessee deliberately concealed the particulars. Thus, considering only the amount of speculation loss for quantification as concealed income is not correct according to the law. Limitation - As per the record, the ITAT order was dated 15/2/2007. Therefore, six months time limit for passing penalty order expires on 30/09/2007. The penalty order passed on 31/08/2009 was certainly barred by limitation. Also, limitation prescribed u/s 275(1)(a) does not extend the time limit till miscellaneous application was disposed off. Hence, both on merits of the case as well as on the ground of limitation, the order of the penalty cannot be sustained - Decided in favor of assessee
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