2015 (2) TMI 211

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....tances of the case, the Tribunal was right in upholding the decision of the CIT (A) who had quashed the order of the assessing officer passed under Section 154 of the Income Tax Act?        ii) Whether on the facts and in the circumstances of the case, the Tribunal was right in not considering Section 94 (8) while dealing with the issue on hand? 2. Shorn of unnecessary details, the brief facts of the case are that the respondent/assessee filed return of income for the assessment year 2004-2005 declaring a total income of Rs. 9,10,880/=. The assessee is carrying on business of investment and trading in shares. The return of income comprised of long term capital gains to the tune of Rs. 3,67,213/= and short....

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....pparent on the record appearing in the assessment. However, the assessee clarified that the short term capital loss was correctly worked out under Section 94 (8) of the Act, which is applicable to bonus units and cannot be made applicable to the impugned assessment year, but only for the next assessment year. However, the Assessing Officer did not accept the said contention of the assessee and denied the claim of short term capital loss. 5. Aggrieved against the said assessment, the respondent/assessee preferred appeal before the CIT (Appeals), inter alia contending that Section 94 (8) came into operation only from the assessment year 2005-2006 and, therefore, it cannot be referred to for making any disallowance for the assessment year 2....

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....estions of law. 7. Heard Mr. T.R.Senthil Kumar, learned standing counsel appearing for the Revenue and perused the materials available in the typed set of documents. 8. On a careful perusal of the materials available on record and the findings as given by the CIT (Appeals) as also the Tribunal for arriving at the decision, this Court is in agreement with the findings of the Tribunal that when the Assessing Officer is in doubt as to the nature of the units sold and the fact that Section 94 (8) of the Act being clarified by the Tribunal to have retrospective operation only by the subsequent decision of the Tribunal, there is no scope for the Assessing Officer to resort to Section 154 proceedings after having accepted the assessee's ....