The Tax Publishers2019 TaxPub(DT) 6570 (Kol-Trib)

INCOME TAX ACT, 1961

Section 263

As apparent, AO had issued section 133(6) letter/notice to concerned company during the course of scrutiny which stood adequately replied in assessee's favour. Coupled with this, all the relevant factual details in support of assessee's share purchase document, contract notes, bank statement were furnished. There was not even an iota of material quoted against assessee to have been enaged artificial price rigging, accordingly, AO had rightly treated LTCG derived from sale of shares to be genuine and that being the case, Pr.CIT's exercise of revision jurisdiction merely on suspicious circumstances was not justified.

Revision under section 263 - Erroneous and prejudicial order - AO having made due enquiry as regards assessee's claim of exemption under section 10(8) in relation to long-term capital gain on sale of shares -

Pr.CIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground that AO accepted long-term capital gain declared by assessee on sale of shares as genuine and allowed exemption under section 10(38) without making any enquiry in that regard.Held: As apparent, AO had issued section 133(6) letter/notice to concerned company during the course of scrutiny which stood adequately replied in assessee's favour. Coupled with this, all the relevant factual details in support of assessee's share purchase document, contract notes, bank statement were furnished. There was not even an iota of material quoted against assessee to have been enaged artificial price rigging, accordingly, AO had rightly treated LTCG derived from sale of shares to be genuine and that being the case, Pr.CIT's exercise of revision jurisdiction merely on suspicious circumstances was not justified.

Relied:CIT v. Ratan, ITA No. 105/2016, M/s. Classic Growers Ltd. v. CIT, ITA 129/2012, CIT v. Lakshmargarh Estate & Trading Co. Ltd. (2013) 40 Taxman.com 439 (Cal), CIT v. Smt. Shreyashi Ganguly, ITA 196/2012 and CIT v. Bhagwati Prasad Agarwal (2009/TMI 34738/Cal in 22/2009, dt. 29-4-2009.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

IN THE ITAT, KOLKATA BENCH

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