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2015 (12) TMI 1231 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - Assessee was not entitled to adjust the dividend income against the business loss - CIT(A) deleting addition - Held that:- CIT(A) while deleting the penalty has given a finding that Assessee had disclosed all the relevant facts regarding the computation of income, the income from business and the dividend earned on shares in the return of income and none of the particulars furnished by the Assessee were found to be false or inaccurate. He has further noted that the issue is debatable as the matter had traveled up to ITAT, again set aside to the file of A.O and that the question of law being admitted by Hon'ble Gujarat High Court shows that the issue is debatable. These findings of ld. CIT(A) have not been controverted by Revenue. We further find that on merits, on identical issue as to whether the dividend income can be set off against the speculation loss, the Hon'ble Gujarat High Court in the case of CIT vs. Sphere Stock Holding Pvt. Ltd. (2011 (8) TMI 1124 - GUJARAT HIGH COURT) has upheld the view of ld. CIT(A) as well as Tribunal that the irrespective of provisions contained in Section 56 of the Act and Explanation to 73, loss should be adjusted against such business income. In view of the aforesaid facts and in the absence of any contrary binding decision brought to our notice by Revenue, we find no reason to interfere with the order of ld. CIT(A) and thus the ground of Revenue is dismissed. - Decided in favour of assessee.
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