9911796707
TMI Blog2014 (3) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... 271(1)(c) ignoring the fact that the assessee had neither in the return of income nor in the accompanied documents, disclosed that the bonds in question were sold within the period of three months and the assessee did not suo-motu disallow the short term capital gain on sale of these bonds to the extent of dividend received." 2. Facts in brief:- The assessee had PURCHASED Sundaram Mutual funds for Rs. 40,00,000 on 26th December 2003, on which he received dividend of Rs. 15,48,599. The said units were redeemed by the assessee on 26th March 2004 for Rs. 22,68,801 as against the investment of Rs. 40 lakhs, which resulted into short term capital loss of Rs. 17,31,198. The dividend received by the assessee of Rs. 15,48,566 was claimed as exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate particulars of income. 5. The learned Commissioner (Appeals) deleted the penalty on the ground that the assessee had a bonafide belief and also the disallowance is mainly on account of technical or venial breach of law, which cannot be ground for levy of penalty under section 271(1)(c). 6. Before us, the learned Departmental Representative submitted according to the provisions of section 94(7), the loss cannot be allowed if the person has sold the securities within the period of three months then such a loss need to be disallowed which does not exceed the amount of dividend. In this case, the period of three months than start from 27th December 2003, as the assessee had purchased the unit on 26th December 2003 and the period of three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee as a short term capital loss in the return of income. As per the provisions of section 94(7), the loss, if any, arising to the assessee on account of purchase and sale of securities or units, then such a loss has to be ignored if the securities has been sold or transferred within the period of three months. The assessee has calculated the period of three months after considering the days in a month. He has calculated 91 days up to 26th March 2004, after considering the five days from 27th December 2003 to 31st December 2003; 31 days in January 2004; 29 days in February 2004 (being a leap year) and 26 days up to 26th March 2004. Thus, the total period calculated was 91 days. From such a calculation, it can be very well be inferred that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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