Case Law Details
Af-taab Investment Company Ltd. Vs ACIT (ITAT Mumbai)
In this case the assessee had a bonafide belief that the loss suffered by it is business loss. The change of nature of loss from business loss to speculative loss was not enough to impose penalty on the assessee. Therefore, we are inclined to delete the penalty imposed in this case. Accordingly, grounds raised by the assessee are allowed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present appeal has been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals)-4, in short ‘Ld. CIT(A)’, Mumbai, dated 05.09.2012 for AY 2002-03.
2. The brief facts of the case are, assessee is an investor and dealer in shares and securities. During assessment proceedings, AO observed from annual report for FY 2001-02 that some of the shares are held as long term investments while the others are stock-in-trade. The profit or loss on sale of long term investments is offered for tax under the head ‘Capital gains’ while the stock-in-trade is offered for tax under the head ‘Business Income’. In the return of income, assessee declared the total income as under:-
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