CA Mayur Sojrani (CA) (318 Points)
07 December 2010Can penalty under section 271 (1)( c ) in case of Dividend Stripping Transaction done by the person be levied.
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 07 December 2010
If the loss has been computed properly in accordance with Section 94(7) by taking into consideration, the amount of dividend received then penalty is not leviable.
However, if the loss has been computed and dividend has not been taken into account, then it will be deemed that you have furnished inaccurate particulars of income. Consequently penalty can be imposed U/s 271(1)(c).
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