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2015 (10) TMI 1603 - AT - Income TaxPenalty u/s.271(1)(c) - treatment of transactions in shares and mutual funds - whether assessable under the head 'income from short term capital gains' as declared by the assessee and whether to be assessed under the head 'income from business' - Held that:- As decided in assessee's own case relating to assessment year 2006-2007 till last assessment year the assessee was showing income from share business under the head business income, that during the year it had converted its stock in trade in to investment, that it was maintaining two portfolios in the year under appeal, that it had showed income from certain share transaction under the business head. As per the provisions of the Act, the assessee can convert his stock in trade in to investment. So, if in the year under consideration, it had opted for that option, there was no reason to reject its claim. It had passed necessary entries in the books of accounts. Therefore just because of a decision taken in quantum proceedings, it cannot be held that the assessee had concealed particulars of income. It is said that decision in the assessment proceedings do not result in automatic imposition of penalty. In the matter before us, the assessee had filed all the necessary details before the AO. There was difference of opinion between the assessee and the AO about the treatment to be given to the share transactions undertaken by the assessee. The admission of the appeal by the Hon'ble jurisdictional High Court against the quantum proceedings prove that there is difference of opinion about the issue in question. In such matters, in our opinion, penalty should not be levied - Decided in favour of assessee.
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