The Tax Publishers2019 TaxPub(DT) 1409 (Del-Trib)

INCOME TAX ACT, 1961

Section 263

Since AO had not applied his mind to the issue of share transactions for which detailed information was available regarding suspicious nature of the transactions, assessment order was erroneous and prejudicial on account of lack of enquiry.

Revision under section 263 - Erroneous and prejudicial order - Lack of enquiry -

CIT invoked jurisdiction under section 263 and held assessment order to be erroneous and prejudicial to the interest of revenue on the ground of AO having failed make enquiry as regards information received from investigation wing as to assessee having claimed bogus long-term capital gain on sales of shares of M/s K.Held: As apparent, assessee to the notice issued by AO pertaining to long-term capital gains replied that it had purchased the shares on 16-3-2012 and sold in July, 2013 and received sale proceedings original shares purchased were of M/s. P which stood merged with M/s. K and the shares of M/s K were allotted in the ratio of 1:1 Beyond this information no enquiries were conducted by AO. Thus, it was not a case of inadequate enquiry but clear case of lack of enquiry and since, AO had not applied his mind regarding allowability of exemption of the long-term capital gain assessment order was erroneous and prejudicial.

Relied on:Malabar Industrial Co. Ltd. (2001) 243 ITR 83 (SC) : (2001) 159 CTR 1 (SC) : 2000 TaxPub(DT) 1227 (SC)

REFERRED :

FAVOUR : Against the assessee.

A.Y. :



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