Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 317 - AT - Income TaxPenalty u/s. 271(1)(c) - change of head of income - assessee claimed the transactions relating to mutual fund constituted part of his business and loss to be treated as its business loss - AO treated the loss as ‘Short Term Capital Loss’ - HELD THAT:- Mere change of head of income should not result in automatic levy of penalty. The details about the ‘business loss’ or ‘Short Term Capital Loss’ were available on the record. Therefore, it cannot be said that assessee had filed ‘Inaccurate Particulars of Income’. Even if a unsubstantiated claim is made in the return of income, it cannot be held that the assessee is liable for levy of penalty u/s. 271(1)(c). Difference of opinion between the AO and the assessee about head of income under which ‘Particular Item’ is to be ‘assessed’ was and would remain a bone of contention between the AO and the assessee. But such differences should not and cannot result in invoking the penal provisions of chapter XXI of the Act. Therefore, we delete the penalty and allowed these grounds raised by the assessee.
|