Case Law Details
Penalty proceeding u/s 271(1)(c ) imposed on the basis of that the assessee declared short term gains on the sale of the stock options instead of long term capital gains is not justified.
The question whether the sale of the stock options would result in long term capital gains or short term gains was not very clear at the time when the respondent/ assessee filed his return for the assessment year 2002-03. In fact the view taken by the assessing officer in the quantum proceedings had been reversed by the Commissioner of Income Tax (Appeals) in the appeal filed by the assessee.
The view taken by the Commissioner of Income Tax (Appeals) was ultimately reversed by the Tribunal and the view of the assessing officer was upheld in the quantum proceedings. This, in itself, is indicative of the fact that the issue was not very clear-cut. That being the position, we cannot bring the case of the respondent/ assessee within the provisions of section 271(1)(c) of the said Act. The reliance placed by the Tribunal on CIT vs. Reliance Petroproducts Pvt. Ltd.: 322 ITR 158 (SC) is also apposite.
Also Read ITAT Judgment in this case :-Mere taking of a claim, which is not sustainable in law, will not amount to furnishing inaccurate particulars
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