The Principal Commissioner of Income-tax-1 v. Sushilaben D Shah
|The Principal Commissioner of Income-tax-1
|Sushilaben D Shah
|HIGH COURT OF GUJARAT AT AHMEDABAD
|Date of Order
|question of law • penalty • long-term capital gain • penny stock • accommodation entries
|The Revenue has proposed the following question of law for the consideration of this Court; Whether the Appellate Tribunal was correct in law and on facts in deleting the penalty of Rs.50,330/- levied under section 27(1)(c) on bogus LTCG claim of the assessee on transaction in penny stocks of Mukesh Choksi Group of accommodation entry providers 2. We have considered the rival submissions on the issue as pointed out on behalf of the assessee. It is not in dispute that the assessee has furnished the supporting bills and details of payments in support of transactions reported to be long term capital gain. Considering the smallness of the amount involved, we consider it expedient to give benefit of doubt to the assessee owing to mitigating circumstances viz; the absence of copy of statement of Mr. Mukesh Chokshi or any other substantive material. The assessee has supported the face value of transactions with bills and payments. In the backdrop of ambiguity in circumstances, it is difficult to hold that the explanation offered by the assessee is blatantly false. We are thus inclined to exonerate the assessee from the incidence of penalty.