2010 (2) TMI 1214

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....a Jha and Ms. Akansha Aggarwal O R D E R This appeal is directed against the Tribunal?s order dated 11.04.2008 in ITA No. 194/Del/2007 for the assessment year 2003-2004 The appeal arises out of the penalty proceedings initiated by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the said Act?). The assessee had returned a loss of Rs. 1,26,43....

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....ncome Tax (Appeals) and the deletion was confirmed by the Income Tax Appellate Tribunal by the virtue of the impugned order. The tribunal was of the view that the loss was suffered by the Assessee in the said activity of purchase and sale of shares and having regard to the nature of the said transactions as well as the nature of its own business, the assessee company was under a belief that the s....

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....e of the loss from business loss to speculative loss was not enough to impose penalty on the assessee. The Tribunal held that the assessee had claimed the loss as business loss under a bona-fide belief that he was entitled to do so. It is well settled that assessment proceedings and penalty proceedings are distinct and independent of each other. No doubt, the findings in the assessment proceeding....