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2014 (5) TMI 996 - ITAT DELHIDeletion of penalty u/s 271(1)(c) of the Act – LTCG claimed inspite of STCG – Intention to evade tax - Held that:- The assessee had treated the entire capital gain as long term capital gain for the reason that ESOPs remained vested with him for more than 12 months - the date of acquisition of shares has been considered with reference to the date of which assessee had exercised the option by making payment for shares - the issue is highly debatable as to whether date of acquisition of shares is to be reckoned from the date when the assessee exercised its option to acquire shares in pursuance to the rights vested in him by virtue of allotment of ESOP or from the date from which the right vested in him by allotment of ESOP entitling him to acquire the shares, which is also a capital asset - there can be two views on the issue and it cannot be said that assessee’s action in returning the income as long term capital gain was illegal - The assessee had not concealed any particulars of its income - The facts were duly disclosed before the Department and only on account of different interpretation, the capital gain was treated as short term capital gain – thus, there is no reason to interfere in the order of the CIT(A) – Decided against Revenue.
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