2012 (3) TMI 467

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....33A were conducted at the residential and business premises of the group on 26.10.2005. The assessees' regular source of income is from house property and shared property from M/s. V.N. Ashtekar. In its original return filed u/s. 139 on 30th May 2003, the assessee . P.P. Ashtekar had shown Long Term Capital Gains from the sale of 8000 shares of Database Finance Ltd., but, in the return filed in response to notice u/s. 153A, the entire sale proceeds of Rs. 7,03,200/- has been offered under the head "Short Term Capital Gains". The A.O. observed that the above additional income has come to light only as a result of the search action. He accordingly initiated penalty proceedings u/s. 271(1)(c ) for the concealment of income and has levied penal....

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..... 2003-04), Order dated 8th December 2010. 2) CIT Vs. Harshavardhan Chemicals & Minerals Ltd.,259 ITR 212 (Raj.) 3) CIT Vs. Reliance Petroproducts P. Ltd., 322 ITR 158 (SC) 6. The Ld. D.R. on the other hand tried to justify the orders of the authorities below with this submission that only after search survey proceedings, the assessee came out with true facts that profit earned from the sales of shares in question was Short Term Capital Gains and not as Long Term Capital Gains as claimed by them in their original returns of income filed u/s. 139(1) of the Act. Thus, the concealment of particulars of income or furnishing inaccurate particulars thereof on their part is apparent to attract the penal provisions u/s. 271(1)(c) against t....

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.... Tribunal, the assessee contended that impugned transactions were effected through banking channels and these were delivery based transactions of the penny shares. It was submitted that the Pune Bench of the Tribunal has held in number of cases that such gains have to be taxed as short term capital gains and not as income from other sources. It was submitted that there is dispute on a taxability of such gains on a particular head of income, therefore, considering the debatable nature of the issue and furnishing or disclosure of relevant information in the revised return of income, penalty u/s. 271(1)(c ) is not leviable. Reliance was placed in the cases of Santosh Narayan Kapur, 115 TTJ (Luck.) 402 and Premchand Garg, 123 TTJ (Del.)(TM) 433....

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....change for a total sale consideration of Rs. 17,69,815/-. The submission of the Ld. A.R. remained that in case of . P.P. Ashtekar, shares were held by him from 20th April 2001 to 24.09.2002 and in case of  P.B. Ashtekar, these were held from 20th April 2001 to 23.9.2002 i.e. for a period more than 12 months. The assessees in their original returns of income filed on 30th May 2003 for the A.Y. 2003-04 declared long term capital gains in case of  P.P. Ashtekar after set off of assets of long term capital loss of Rs. 4,19,069/-. He paid tax on the balance capital gain at the rate of 10% as per provisions of Sec. 112 of the Act. Similarly, in the case of . P.B. Ashtekar, after set off of assets, long term capital gain loss of Rs. 16,1....