No Penalty for Offering income under capital gain instead of Business head under bonafide impression

ACIT Vs M/s. Sane & Doshi Enterprises (ITAT Mumbai) We find that the assessee had shown unsold stock as investment in its books of accounts from 01.04.2005, that that profit arising out of the sale of the flats was offered for tax under the head capital gains,that the AO was of the opinion that the stock in trade cannot partake the character of investment, that the AO levied penalty,invoking the provisions of section 271(1)(c)of the Act,that the FAA deleted the penalty.In our opinion,the basic issue to be decided is as to whether the treatment given by the assessee to the sale proceeds of ...