Concealment penalty due to penny stocks., Income Tax

[RAJESH SANGHVI]

The assessee submitted LTCG from shares in his return. The AO treated the same as penny stock  and treated the LTCG as unexplained cash credit. The CIT(A) upheld the same. Matter is in ITAT pending. AO levied penalty u/s 271(1)(c). Before CIT(A), assessee contention is that after LTCG was shown, hence withut prejudice, it is only change of heading from LTCG to unexplaine dcash credit. No addition in terms of quantum is made. Can concealment penalty be made. Cases relied upon are Reliance Petro products

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[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the said issue? If not please inform.

[RAJESH SANGHVI]

The CIT(A) deleted the penalty u/s 271(1)(c) NOT due to change of heading in Penny stocks case but due to issue of legality of Initiation, notice deficiency u/s 274 , initiated due to concealment and levied due to inaccurate particulars following Manjunatha Judgement karnataka HC and Samson Perinchery judgement Mum ITAT. So the change of heads issue in penny stocks is unaddressed