TMI Blog2014 (8) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... bona fide mistake. The A.O. had not detected any concealment of income but had sought the details of disallowance u/s. 94(7) in ordinary course of assessment proceedings. The ld. CIT(A), therefore held that it was not a fit case for levy of penalty. AR submitted that the assessee has returned a total income of ₹ 12.25 crores. He, further, submitted that the disallowance prescribed u/s.94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) in deleting the penalty levied by the Assessing Officer (A.O.) u/s.271(1)(c) of the Income Tax Act, 1961 ( the Act hereinafter) in respect to dividend striping u/s. 94(7) of the Act. The assessee is a share broker and a share trader. During the assessment proceedings, the A.O. noticed that the assessee had received a dividend of ₹ 47,16,889/- from Indian Companies and Mutual Funds. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e realized his bona fide error, he immediately brought the said error into the notice of the A.O. and voluntarily offered the said disallowance for taxation. After hearing the ld. Representative of the assessee, the ld. CIT(A) deleted the penalty observing as under: 2.7 So far as penalty on account of disallowance of loss u/s.94(7) is concern, the contentions of the ld. AR have been examine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the parties and have also gone through the record. The ld. CIT(A) after going through the explanation submitted by the assessee has observed that it was not a case of concealment of income rather of bona fide mistake. The A.O. had not detected any concealment of income but had sought the details of disallowance u/s. 94(7) in ordinary course of assessment proceedings. The ld. CIT(A), therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
