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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI D. KARUNAKARA RAO & SHRI PAWAN SINGHShri M. Murli, DR Shri Arvind Sonde
सुनवाई की तायीख / Date of Hearing : 17.11.2016 घोषणा की तायीख /Date of Pronouncement : 13.01.2017 आदेश / O R D E R
PER D. KARUNAKARA RAO, AM:
This appeal filed by the Revenue on 07.7.2014 is against the order of the CIT (A)-6, Mumbai dated 22.4.2014 for the assessment year 2008-2009. In this appeal, Revenue raised the following grounds which read as under:- “Whether on the facts and in the circumstances of the case and in law, Ld CIT (A) has erred in deleting of the penalty levied on the assessee u/s 271(1)(c) of the Act without appreciating the fact that the claim of expenses pertaining to speculation transaction made by the assessee was not established and therefore was not allowable and making such claim amounts to the furnishing of inaccurate particulars of income within the meaning of section 271(1)(c) of the Act.”
2. At the outset, Ld Counsel for the assessee briefly narrated the facts of the case and submitted that the penalty levied on the assessee u/s 271(1)(c) of the Act is relatable to the expenditure attributable to the speculation loss reported by the assessee in the return of income. Revenue Authorities disturbed the revenue expenses based on the turnover of 5% of the expenditure attributable to the speculation loss. Agreed to the above disallowance on ad-hoc basis considering the fact that the benefits available to the assessee on the said additions in the later