MONEEKA MALHOTRA,NEW DELHI vs. A O, DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMANAssessment Year: 2012-13
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)/National
Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1063592683(1), dated
29.03.2024 involving proceedings under section 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. Heard both the parties. Case file perused.
Assessee by Sh. Venkatesh Chaurasia, CA
Department by Sh. Ramesh Chand, Sr. DR
Date of hearing
13.05.2025
Date of pronouncement
13.05.2025
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It emerges at the outset that both the learned lower authorities have levied the impugned section 271(1)(c) penalty of Rs.87,516/- in Assessing Authority’s order passed on 16th March, 2022 and upheld in the lower appellate discussion. Thereby, admittedly held the assessee to have furnished inaccurate particulars of her taxable income relating to the alleged bogus long- term capital gains derived from sale of shares amounting to Rs.7,83,000/- which stood declared during the course of scrutiny at her behest. 4. Faced with this situation, the Revenue vehemently argues that the impugned penalty in such an instance of bogus long-term capital gains indeed deserves to be upheld. We find no merit in the Revenue’s stand in support of the impugned penalty for the precise reason that the above quantum issue of bogus long-term capital gains is a highly debatable one involving subjective appreciation of the relevant facts which does not automatically attract section 271(1)(c) penalty going by CIT Vs. Reliance Petro Products (2010) 322 ITR 158 (SC). We accordingly accept the assessee’s instant sole 3 | P a g e substantive grievance to delete the impugned penalty of Rs.87,516/-. Ordered accordingly. 5. This assessee’s appeal is allowed. Order pronounced in the open court on 13th May, 2025 (S. RIFAUR RAHMAN) JUDICIAL MEMBER
Dated: 13th May, 2025. RK/-