TaxTMI 
TaxTMI 
2015 (5) TMI 1089
X X X X Extracts X X X X
X X X X Extracts X X X X
....g that furnishing its return of income the assessee has neither concealed its income nor furnished inappropriate particulars of income and mere treatment of business loss as peculation loss by A.O. do not automatically warrant the inference of concealment of income without appreciating the decision of the Hon'ble Supreme Court in the case of Dharmendra Textile Processors reported in 306 ITR 277 wherein it is held that the element of mensrea is not essential for levy of penalty. 2. On the facts and in the circumstances of the case, the impugned order of the Ld. CIT(A) is contrary to laws to be set aside and that of the Assessing officer be restored." Assessee-company, engaged in the business of share broking, filed it return of income on 0....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the assessee the AO levied penalty of Rs. 7,45,180/- vide his order dated 31st March 2009. 3.The assessee preferred an appeal before the FAA and contended that the disallowance made by the AO had converted the business loss into speculative loss following the provision of explanation to section 73 of the Act, that the addition were made on account of application of deeming provisions and not on account of any concealment of any particular of income, that assessee had not suppressed any income or claimed any wrong expenditure, that at the time of filing of return the assessee had mentioned about the dealing with shares of other company, that the AO had found about the loss from the profit and loss account filed by the assessee. The assess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....head business loss. We are of opinion that mere change of head of income should not result in automatic levy of concealment penalty.The detail about the speculative loss was available on the record. Therefore, it cannot be held that assessee had filed inaccurate peculiars of income or had concealed the particulars of income.Even if a unsubstantiated claim is made in the return of income, it cannot be held that the assessee is liable for levy of penalty u/s.271(1)(c). Difference of opinion between the AO and the assessee about head of income under which particular item is to be assessed was and would remain a bone of contention between the AO and the assessee. But such differences should not and cannot result invoking the penal provision of ....