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TMI Blog2012 (7) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... red a loss of Rs. 10,83,396/-. 3. The AO invoked the provisions of section 94(7), whereby, according to the AO, since the provision says "after such date" in clause (b), the assessee should have held the units upto 26-03-2004. Since the units were sold on 26-03-2004, the provisions of section 94(7) becomes applicable. Impliedly, according to the AO, the period starts from 27-12-2003 and ends on 25-03-2004. He, therefore, disallowed the loss of Rs. 9,66,920 (Rs. 10,83,396 - Rs. 1,16,475) and added the same to the income of the assessee. 4. The AO, thereby, initiated penalty proceedings. The assessee approached the first appellate authority against quantum, which went against him. The assessee, however, did not pursue further appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articulars of income. The A.R. submitted that the entire facts, relating to the basis/reasons for disallowing the claim were there before the revenue authorities. The A.R. submitted that the penalty cannot become exigible simply because the view taken by the assessee is unacceptable to the revenue authorities. The issue here in the case is that the Bonds purchased on 26-12-2005 and sold on 26-03-2005, would this period be the period of 3 months as per the provisions of section 94(7). The A.R. submitted that it was only a question of interpretation, i.e. whether the provisions of section 94(7) in the present case are applicable or not. The Authorised Representative submitted that the word "inaccurate" had been explained by the Hon'ble Suprem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble Supreme Court has referred to the case of Dilip N. Shroff v/s JCIT reported in 291 ITR 519 wherein the Hon'ble Supreme Court had held as under: "The word "inaccurate" in the context of levying penalty under section 271(1)(c) signifies a deliberate omission on the part of the assessee. Such deliberate act must be either for the purpose of concealment of income or furnishing of inaccurate particulars. The Assessing Officer is required to arrive at a finding that the explanation offered by the assessee, in the event he offers one, was false. He must be found to have failed to prove that such explanation was not only not bona fide but all the facts relating to the same which are material to the income were not disclosed by him. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cret. The word 'conceal' is con+celare which implies to hide. It means to hide or withdraw from observation; to cover or keep from sight ; to prevent the discovery of ; to withhold knowledge of. The offence of concealment is, thus, a direct attempt to hide an item of income or a portion thereof from the knowledge of the income-tax authorities.' In Webster's Dictionary, 'inaccurate' has been defined as : 'not accurate, not exact or correct; not according to truth; erroneous; as an inaccurate statement, copy or transcript." It signifies a deliberate act or omission on the part of the assessee. Such deliberate act must be either for the purpose of concealment of income or furnishing of inaccurate particulars. The Hon'ble Court, observes lat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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