TMI Blog2012 (3) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... bt such explanation of the assessees for showing the gain as Short Term Capital Gain in their return filed u/s. 153A to attract penal provision u/s. 271(1)(c ) of the Act. Under these circumstances, it cannot be inferred beyond doubt that the assessees had furnished inaccurate particulars of income in their original returns of income filed u/s. 139 of the Act declaring the sale proceeds of the shares as Long Term Capital Gain. We thus while setting aside the orders of the authorities below, direct the A.O to delete the penalty - Decided in favour of the assessee. - ITA Nos. 881 & 882/PN/2010 - - - Dated:- 28-3-2012 - Shri I.C. Sudhir Judicial Member and Shri G.S. Pannu Accountant Member For the Appellant: M.R. Bhagwat For the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- has been offered as income under the head Short Term Capital Gains . The A.O. has levied penalty u/s. 271(1)(c ) for the concealment of income. 4. The Ld CIT(A) has upheld the penalty levied on the above assessees with this observation that if the original return could form the basis for determining the quantum of penalty impossible on reassessment, there is no reason why the original return should also not form the basis for determining the date on which the concealment was effected by the assessee. The Ld CIT(A) accordingly held that the concealment of particulars of income was effected by the assessee when the tax payer filed original return of income. 5. Before the Tribunal, the Ld. A.R. reiterated the submissions made befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o undo the claim made in original return and that the Department has not brought out any incriminating material to demonstrate the impugned penny stock in question were purchased for converting the unaccounted money into accounted money. In that case before the Tribunal, the assessee had filed his original return consisting of income from Long Term Capital Gain on account of sales of shares. He subsequently filed revised return wherein the Long Term Capital Gain originally shown was revised as Short Term Capital Gain. Proceedings u/s. 148 were initiated and on the basis of enquiries conducted by the Investigation Wing of Department and enquiries conducted by the A.O, it was held that no purchase/sale transaction of shares in respect of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares of Database Finance Ltd. through the broker (in case of . P.P. Ashtekar 800 shares for ₹ 9769/- and 2000 shares in case of . P.B. Ashtekar for ₹ 25,400/-). These shares were shown as investment in Balance Sheet drawn on 31st March 2002 attached and filed with the return of income for A.Y. 2002-03. The aforesaid fully paid equity shares of Database Finance Ltd., on the face value of ₹ 10/-each were sub-divided into 8000 in the case of . P.P. Ashtekar and 20000 in the case of .P.B. Ashtekar fully paid equity shares of ₹ 1/- each on 30th August 2002. Subsequently, the assessees sent return of the shares held by them in physical form to the company for dematerialization and accordingly, these fully paid equity sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lls were filed to him. However, in response to notice u/s. 153A, the assessees filed their return of income for the year offering entire sale proceeds of paid shares of Database Finance Ltd. as short term capital gain for the following reasons. i) The appellant was not sure of getting the third party confirmation, support and personal appearances (if summoned) of the broker from whom the shares were purchased in April 2001. ii) To avoid long drawn and expensive litigation iii) To buy peace of mind iv) To avoid penalty proceedings 10. From the orders of the authorities below, we find that there is no dispute regarding the purchase and sales of the shares. The only dispute is regarding the date of purchase. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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