The Tax Publishers2020 TaxPub(DT) 4757 (Hyd-Trib) : (2021) 187 ITD 0022 : (2020) 208 TTJ 0885

INCOME TAX ACT, 1961

Section 263

Where AO before allowing assessee's calim made the enquiry, mere non-mentioning of reasons for allowing the claim, could not make assessment order erroneous and prejudicial.

Revision under section 263 - Erroneous and prejudicial order - No lack of enquiry on AO's part as alleged by CIT - Non-mention of reason for allowing assessee's claim in assessment order

CIT held assessment order as erroneous and prejudicial to the interests of the revenue on the ground of AO not having made enquiry before allowing loss on sale of shares as claimed by assessee.Held: During assessment proceedings under section 143(3) , AO vide notice issued under section 142(1) had required the assessee to furnish details of loss on sale of shares. Assessee had explained that loss was on account of sale of shares and the circumstances under which such loss was incurred were explained. Thus AO had allowed loss claimed by assessee only after considering reply of assessee. In such situation, mere non-mentioning of reasons for allowing the claim, could not make assessment order erroneous and prejudicial.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14


INCOME TAX ACT, 1961

Section 263, 32(2) and 170

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