2020 (6) TMI 293

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..... from other sources. The case was selected to scrutiny under CASS on the ground of "large deduction claimed u/s 54B, 54C, 54D, 54G and 54GA". The AO observed that the assessee had received 2000 shares as gift from her father which she has sold during the year and has earned capital gain therefrom but has claimed part of the capital gain as exempt u/s 54EC and the balance of capital gain has been deposited into the capital gain a/c. The assessee had claimed indexation cost of acquisition at Rs. 41,41,056/- for computing the long-term capital gain. However, during the assessment proceedings the assessee withdrew the "cost of acquisition" by adopting the cost of acquisition at Rs.zero and calculated the LTCG and paid the taxes thereon. 3. Fu .....

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..... als) has not given any emphatic finding in his order. He has just quoted the Assessment Order and the submissions of the appellant without coming to a fair and independent finding as to furnishing of inaccurate particulars of income. 5) The Learned Commissioner(Appeals) failed to appreciate the fact that non-filing of appeal against the quantum addition will not be a ground for the Assessing Officer to levy penalty. Your appellant craves leave to add, amend or to alter the above Grounds of Appeal". 5. The learned Counsel for the assessee submitted that the assessee has declared LTCG on sale of shares and has also claimed the cost of acquisition which was after indexation. He submitted that u/s 55(2) of the Act and the explanation (b)(i .....

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..... ported the orders of the authorities below and submitted that when the assessee has acquired the shares, there was no cost to the assessee and therefore, the assessee ought not to have claimed the cost of acquisition in her return of income and by making such a claim, she has furnished inaccurate particulars of income. Thus, he prayed for confirmation of penalty levied u/s 271(1)(c) of the Act. 8. Having regard to the rival contentions and the material on record, I find that the assessee's father had acquired the shares and after being allotted the bonus shares, the total number of his shares was 5220, and it was out of these 5220 shares, that the assessee has been gifted 2000 equity shares on 14.11.2014. Thus, the assessee has been allott .....

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