|The Tax Publishers2020 TaxPub(DT) 5341 (Kol-Trib)
INCOME TAX ACT, 1961
Since AO allowed exemption under section 10(38) as regards long-term capital gain on shares after making proper enquiry and in line with views expressed by various High Courts and the Tribunal, assessment order could not be treated as erroneous and prejudicial.
Revision under section 263 - Erroneous and prejudicial order - No lack of enquiry on AO's part as alleged by Pr.CIT -
Pr.CIT held order passed by AO as erroneous and prejudicial to the interest of revenue on the ground of AO having allowed exemption under section 10(38) as regards long-term capital gain on shares without making enquiry in this regard in spite of departmental information available to the effect that concerned shares had been rigged/manipulated to generate bogus long-term capital gain and was a penny stock. Held: AO had conducted enquiry based on investigation report and after having collected all the information and having gone through the documents and having carried out cross-verification from broker and seller of scrip, AO issued another Letter, in respect of LTCG claim of the assessee, wherein question regarding price variation of Rs. 15 to Rs. 565 per share and the investigation report was asked, and AO being satisfied with replies, had taken a plausible view which was in line with views expressed by various High Courts and the Tribunal. Accordingly, assessment order could not be treated as erroneous and prejudicial.
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, KOLKATA BENCH
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