Case Law Details
Brief of the case
Delhi High Court in the case of CIT vs. M/s Jain Export Private Ltd. held that, to initiate proceedings under Section 271(1)(c), it requires proper investigation and higher satisfaction of proof, which confirmed the basis for the initiation of necessary proceedings. In the absence of it the penalty provision can’t be invoked.
Facts of the Case
The assessee for sale of shares have acquired such shares which was duly reported and accepted by the AO concerned. The Company of which the shares were bought was eventually directed to be wound up and was in the Board of Industrial and Financial Reconstruction (BIFR), for the purposes of rehabilitation. Ultimately, those efforts failed. In the quantum proceedings, the assessee’s contentions were rejected and the amount of ₹44,20,250/-, which was claimed as loss was disallowed.
Contention of the Revenue
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