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2016 (4) TMI 161 - AT - Income TaxPenalty u/s 271B - non comply with the provisions of Section 44AB - Held that:- It appears that the assessee got his accounts audited relating to regular business of manufacturing of GLS Lamps. However, no audit was got conducted in respect of the transaction relating to sale and purchase of shares. In the instant case, this contention of the assessee that the transaction relating to purchase and sale of shares resulted into short term capital loss and the transaction was involving capital assets, is not rebutted at any stage. From the above narrated facts, it is clear that the assessee got his accounts audited for the regular business relating to manufacturing of GLS Lamps and the other transaction was relating to the sale and purchase of shares which resulted into short term capital loss. In the present case, it is not brought on record to substantiate that the loss related to the sale and purchase of shares was assessed as a business loss or adjusted against the regular business income and that the shares sold by the assessee were kept as a stock-in-trade. Therefore, the provisions of Section 44AB of the Act were not applicable to the transaction relating to sale & purchase of shares and the penalty u/s 271B of the Act levied by the AO and sustained by the ld. CIT(A) was not justified, therefore, the same is deleted. - Decided in favour of assessee
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