INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial order - No enquiry by AO despite specific information provided by investigation wing about suspicious long term capital gains -

Assessee's return was processed under section 143(1). Subsequently, there was an information from Investigation Wing about suspicious long term capital gain on shares, and case was selected for scrutiny and assessment was done. Thereafter, proceedings were initiated under section 263 questioning validity of long term capital gain of Rs. 10,99,599, claimed by assessee as exempt under section 10(38). Held: In instant case, a cursory look at assessment order was good enough to hold same to be erroneous. There was a specific information provided to AO about suspicious long term capital gain. Without going by length of the order, there was not even a whisper that an enquiry was held with regard to the long term capital gain, what to say about recording of satisfaction. Contention of assessee that it was a case of change of opinion or case of inadequate enquiry was not well founded. There was no enquiry at all by AO, therefore, there was no question of change of opinion.

Followed:Malabar Industrial Co. Ltd. v. CIT 2000(2) SCC 718 : 2000 TaxPub(DT) 1227 (SC); Ramesh Kumar (HUF) v. ITO 2019 TaxPub(DT) 1409 (Del-Trib)

REFERRED :

FAVOUR : Against the assessee

A.Y. :

SUBSCRIBE FOR FULL CONTENT