(Anoop Jain HUF, ITAT Delhi, delevered on 3-2-2012)
A. On disallowance of Interest for Shares Trading
Facts of the case: A.Y.06-07
The assessee claimed deduction of interest out of his speculative income taxable @30%. AO asked him to prove that interest has been paid to earn speculative income and not earn short term capital gain taxable @10%. However since assessee could not offer any documentary proof to substantiate the same, AO treated the same as towards STCG and disallowed interest resulting addl tax @ 20% on interest component. Now AO seeks to impose penalty and CIT(A) confirmed the order
