TMI Blog2014 (9) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... abharwal, Sr. Advocate with Ms. Swati Thapa, Advocate For the Respondent : Nemo ORDER Sanjiv Khanna, J (Oral) Learned counsel for the Revenue submits that he has obtained instructions. By order dated 14.11.2013 in the quantum proceedings passed by the Income Tax Appellate Tribunal ( Tribunal , for short), an order of remand to the Commissioner of Income Tax (Appeals) [CIT(A)] was passed directing him to decide the appeal afresh. 2. We have examined the impugned order passed by the Tribunal dated 14.11.2013 affirming the view of the CIT (A) deleting the penalty of ₹ 15 lakhs imposed by the Assessing Officer under Section 271 (1)(c) of the Income Tax Act, 1961 ( Act , in short). The appeal pertains to the Assessment Year 2001-02. 3. The respondent-Assessee, during the period relevant to the Assessment Year was engaged in the investment of shares and securities cum business of shares and securities and other related activities. In the return of income filed in response to the notice under Section 153C of the Act, income of ₹ 10,65,750/- was disclosed. The respondent-assessee had also disclosed short term capital gains of ₹ 31,04,398/- on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taining a clear demarcation between the shares which were treated as investments and shares held as stock-in-trade for business. He has recorded that the respondent-assessee has submitted relevant copies of the books of accounts pertaining to the capital account, step-wise investment accounts, purchase account and sales account. We may record that in the written submission filed before the CIT (A) as recorded in the order, it was stated that the details of shares held as investments was duly mentioned in Schedule 4 of the Balance Sheet and in Note No. 6 forming part of the Balance Sheet, detail of transactions which were treated as business was clearly reflected. Further, the shares which were sold and treated as short term capital gains were not accounted for in the opening balance nor in the closing balance. In the books of accounts also, the shares in question were shown under the head investment and in the profit and loss account, short term capital gains was duly credited. 6. The aforesaid finding of the CIT (A) was affirmed by the Tribunal in the impugned order dated 14.11.2013. Thus, we do not think, the finding of the Assessing Officer that material facts were not duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of stock-in-hand, treated the same as business income. (ii) That the assessee disclosed full particulars submitted all the necessary particulars in support of short term capital gain at the time of assessment proceedings vide submission dated 31.10.2007. (iii) That for levy of penalty u/s 271(1)(c), the pre-requisite is that there should be a concealment of particulars of income or furnishing of inaccurate particulars of such income. In the instant case of the assessee, it has been contended that none of the particulars of the income have been concealed or inaccurately furnished. (iv) Relying upon the judgement of Hon'ble Supreme Court in the case of Cement Marketing Co. of India Ltd. vs. Asstt. Commissioner of Sales Tax, Indore. it was contended that a return cannot be false unless there is an element of deliberateness in it... where the assessee does not include a particular item in the taxable turnover under a bonafide belief that he is not liable so to include it, it would not be right to condemn the return as a false return inviting imposition of penalty. (v) Relying upon the judgement, of the Hon'ble Delhi High Court in the case of CIT vs. Bacardi Mart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is income. Present is not the case of concealment of the income. That is not the case of the Revenue either. However, the learned counsel for the Revenue suggested that by making incorrect claim for the expenditure on interest, the assessee has furnished inaccurate particulars of the income. As per Law Lexicon, the meaning of the word particular is a detail or details (in plural sense); the details of a claim, or the separate items of an account. Therefore, the word particulars used in Section 271(1)(c) would embrace the meaning of the details of the claim made. It is an admitted position in the present case that no information given in the return was found to be incorrect or inaccurate. It is not as if any statement made or any detail supplied was found to be factually incorrect. Hence, at least, prima facie, the assessee cannot be held guilty of furnishing inaccurate particulars. 11. The learned counsel argued that submitting an incorrect claim in law for the expenditure on interest would amount to giving inaccurate particulars of such income . We do not think that such can be the interpretation of the words concerned. The words are plain and simple. In order to expose th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
