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2022 (6) TMI 950 - Income Tax
Head Note / Extract:
Penalty u/s 271(1)(c) - bogus short-term capital loss - revised computation filed post assessment proceedings seeking short-term capital loss may be treated as a “speculative loss” - HELD THAT:- CIT(Appeals) has rightly confirmed the penalty imposed by the Ld. Assessing Officer. The assessee had made bogus claim of short-term capital loss in the return of income. When, after due investigation, the same was detected by the Ld. Assessing Officer during the course of assessment proceedings, the assessee filed revised computation and requested that the short-term capital loss may be treated as a “speculative loss”. No reason for this revised stand/position was given by the assessee Assessing Officer confirmed additions in respect of this bogus short-term capital loss and the assessee did not file appeal against the above addition in quantum proceedings. The Ld. CIT(Appeals) has correctly pointed out that it is only when the incorrect claim of bogus short term capital loss was detected by the Ld. Assessing Officer that the assessee offered to pay tax in respect of the same. Accordingly, the Ld. CIT(Appeals) confirmed the penalty u/s 271(1)(c) correctly - Decided against assessee.