2020 (11) TMI 774 - ITAT DELHI - Income Tax

Head Note / Extract:
Penalty u/s 271AAA - search u/s 132 - assessee had offered additional income during the course of search being additional income declared in AY 2010-11 less the brought forward of unabsorbed short term capital losses - AO in disallowing the claim of set off of brought forward capital loss against the income declared - HELD THAT:- When the claim of the assessee of adjusting the brought forward capital loss against the income declared pursuant to the search has been upheld by the Co-ordinate Bench of Tribunal and since the order of the Tribunal in quantum proceedings has attained finality, then in such a situation, we are of the view that the assessee was fully justified in reducing the unabsorbed short term brought forward capital loss against the income and on the resultant income, he was justified in paying the tax. Thus we do not agree with the view of the Revenue that there was shortfall in the payment of taxes on the brought forward losses resulting into assessee being liable for penalty u/s 271AA of the Act. We, therefore, set aside the order of AO. Thus the ground of the assessee is allowed.