TMI Blog2014 (7) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... return. Therefore, it can be opined that there was no concealment about the particulars of the facts regarding the maturity of RBI bonds. On those facts being disclosed before the Revenue Department a legal question has cropped up whether the assessee was eligible for the short term capital loss or not. Although, it is true that the loss was not permissible in the eyes of law but the correct posit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law and on facts in upholding the levy of penalty of ₹ 2,65,490/- on disallowance of loss on RBI Bonds, on the ground of furnishing inaccurate particulars of income without properly appreciating the facts and submissions of the appellant.. 2. Facts in brief as emerged from the corresponding assessment orders passed u/s.143(3), dated 31.12.2008 and the penalty order passed u/s.271(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in any way, loss is incurred, it will reduce the tax free income. The assessee has contended that he has purchased 9% Tax free Relief Bond from the open market at a premium and on maturity he received the face value only. The difference of cost and face value has been claimed as short term capital loss as the assessee has realized lesser amount on maturity. The contention of the assessee is not ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the assessee was fully aware that such claim was not an allowable claim as per law. According to learned CIT(A), by no stretch of imagination, it was a case which had fallen under the category of debatable issue but it was a case of furnishing of inaccurate particulars. By assigning those reasons, the action of the AO was confirmed. 4. With this brief background, we have heard both the side ..... X X X X Extracts X X X X X X X X Extracts X X X X
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