https://www.taxtmi.com/caselaws?id=268739 The ITAT Kolkata held that the receipts from the sale of paintings were capital receipts arising from personal effects and not income from trade. The assessee's bona fide belief, based on professional advice, that such receipts were not taxable was accepted. The AO did not dispute that the funds from the sale were invested in mutual funds and treated as capital receipts. The penalty under section 271(1)(c) was found unsustainable due to lack of concealment or inaccurate particulars and a defective show cause notice under section 274. Following precedent from the Karnataka HC, the penalty orders were quashed. The decision was in favor of the assessee. en-us Fri, 06 Nov 2015 00:00:00 +0530 Thu, 24 Jul 2025 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=268739 The ITAT Kolkata held that the receipts from the sale of paintings were capital receipts arising from personal effects and not income from trade. The assessee's bona fide belief, based on professional advice, that such receipts were not taxable was accepted. The AO did not dispute that the funds from the sale were invested in mutual funds and treated as capital receipts. The penalty under section 271(1)(c) was found unsustainable due to lack of concealment or inaccurate particulars and a defective show cause notice under section 274. Following precedent from the Karnataka HC, the penalty orders were quashed. The decision was in favor of the assessee. Case-Laws Income Tax Fri, 06 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=268739