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2017 (1) TMI 682 - AT - Income TaxLevy of penalty u/s.271(1)(c ) - AO in assessment order treated derivative transaction activity as business activity instead of investment activity claimed by the assessee. The AO assessed short term capital gain declared by the assessee as business income from these derivative transaction activities - Held that:- The assessee has declared the income arising out of derivative transaction activity as short term capital gain as against assessed by AO as business income. For this assessee has filed an explanation that assessee was under bonafide belief that the entire activity of share trading earns only capital gain and not business income. It was also the argument of the assessee that he has not indulged into any concealment of income or furnishing of inaccurate particulars of income. The findings of AO are unwarranted that he is in organized business activity but only in this year held the transaction of derivative activity as business. The ld. Counsel for the assessee before us filed complete details of transactions relating to derivative transactions/activities. In view of the above explanation and by going through the case records, we are of the view that the Revenue has not been able to controvert the explanation of the assessee or same is held to be false. In such circumstances, we have no hesitation in deleting the penalty and accordingly the penalty is deleted. - Decided in favour of assessee
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