Assessee was engaged in business of trading in shares. It had declared an income on sale of long term investments under head capital gain. Assessing Officer, treated said income as business income. He also levied penalty under section 271(1)(c) on ground that assessee had produced inaccurate particulars of income. Tribunal held that since assessee had not suppressed amount in question and had disclosed it in its return, merely because he declared it under a particular head of income, and Assessing Officer chose to treat same under some other head, assessee could not be accused of furnishing incorrect particulars of income or suppressing facts and, therefore, penalty under section 271(1)(c) is not leviable. High Court affirmed the order of the Tribunal. (AY. 2002-3)