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2020 (5) TMI 302 - AT - Income TaxPenalty u/s 271(1)(c) - addition on account of “Short Term Capital Gains” against the amount declared under the head “Long Term Capital Gains” - HELD THAT:- Co-ordinate Bench of ITAT [2014 (6) TMI 933 - ITAT DELHI] in the case of the assessee has deleted the addition made on account of Short Term Capital Gains. The matter was further remanded back to the AO for examination of re-investment of LTCG in the new asset. Since as on date, the quantum addition stands deleted by the Tribunal, the penalty levied on such income is hereby set aside with liberty to revive the proceedings based on the outcome of the re-investment of the Long Term Capital Gains. Short Term Capital Gain on house property after claiming repair expenses - CIT (A) confirmed the disallowance made by the AO on the grounds that even during the appellate proceeding, the assessee was unable to justify the claim by producing relevant documentary evidence in support of repair expenses - HELD THAT:- Assessee has made payment to four parties on account of the repairs undertaken in the property which has been sold for which the Short Term Capital Gains have been offered to tax. CIT (A) would have been inadvertently ignored the payments made while confirming the disallowance in absence of anything contra brought by the revenue about the payment of the repair charges to the four persons mentioned above. Hence, we hereby direct the disallowance made by the revenue is liable to be deleted. Addition u/s 14A - suo moto disallowance by assessee - HELD THAT:- Provisions of Section 14A(2) have not been adhered to by the revenue and keeping in view the fact that the assessee suo moto has disallowed nearly 30% of the exempt income received, we find that the invocation of Rule 8D in this case is legally not tenable. The disallowance made is directed to be deleted. In the result, the appeal of the assessee is allowed.
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