COMMISSIONER OF INCOME TAX Vs. KRISHNAN THYAGARAJAN SIVARAMA

JUDGEMENT

(1.) DELHI -XVI, in ITA No. 1211/2005 relevant for the asst. yr. 2001 -02.

(2.) THIS appeal under s. 260A of the IT Act, 1961 ('the Act') arises out of penalty proceedings. Initially the AO had accepted the return submitted by the assessee but the CIT(A) exercised powers under s. 263 of the Act and directed the AO to tax the proceeds of sale of shares as a short -term capital gain as against the long -term capital gain claimed by the assessee.

(3.) THE AO more than followed the directions given by the CIT(A) and not only taxed the assessee on short -term capital gains but also imposed a penalty for furnishing inaccurate particulars of income which had led to an inaccurate computation of tax.