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2015 (5) TMI 228 - HC - Income TaxPenalty under Section 271(1)(c) - Disallowance of set-off loss on derivative trading by AO - AO also treated F&O derivatives as "business income", disallowing the capital loss claim - Held that:- When the present controversy arose, there was some divergence of opinion as to the character of such transactions and whether they constitute speculative loss. The introduction of Section 43(5)(b) and related provisions brought in its wake certain complications in that not all stock exchanges were notified to deal with commodities. The Mumbai Bench decision of ITAT in Arnav (2012 (9) TMI 447 - ITAT MUMBAI ) clarified that subsequent recognition or notification of the stock exchange would relate back to the point of time when the legislation was amended. Having regard to these facts, the Court is of the opinion that the ratio in Auric (2007 (7) TMI 276 - DELHI HIGH COURT ) squarely applies to the circumstances of the present case wherein held that since assessee filed full details of the sale of shares, he did not conceal any particulars of income – mere treatment of the business loss as speculation loss by the Assessing Officer does not automatically warrant inference of concealment of income. The imposition of penalty was not warranted. It is accordingly directed to be deleted and the impugned order of the ITAT is set aside. - Decided in favour of assessee.
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