2013 (9) TMI 1140

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....ssing Officer to consider capital gains (loss) of Rs. 22,67,562/- suffered during the previous year on extinguishment of rights in respect of 24767 shares held by him in a defunct company, Naranja Tech Ltd. on its dissolution and striking of its name, u/s 560(3) of the Companies Act even when the relief so sought by the assessee was not verified during the course of scrutiny proceedings in absence of revised return of income. Reliance is placed in the case of Goetze India Ltd. vs. CIT 284 ITR". 2. "On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in directing the Assessing Officer to allow exemption u/s 54F to 7,33,82,992/- against the claim made in return of income at Rs. 6,59,44,053/- even when the relief ....

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..... DR has further submitted that the claims in respect of loss on account of extinguishment of rights as well as mistake in amount of exemption claimed u/s 54F needs investigation of facts and without such inquiry the same cannot be allowed. Thus, the Ld. DR has pleaded that the matter requires a proper examination at level of the AO and accordingly the same may be restored to the record of the AO. 5. On the other hand, the ld. AR of the assessee vehemently objected to the submissions of the Ld. DR and submitted that the CIT(A) has examined all the facts and record relevant to the claim of the assessee. He has further submitted that the assessee produced all relevant record before the Assessing Officer and the CIT(A) has given finding aft....

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....ed the claim of the assessee by accepting the submissions. From the findings of the CIT(A), it does not indicate that any inquiry regarding the correctness of the claim has been carried out. Even otherwise when the Assessing Officer had no occasion to examine the claim of the assessee then before deciding the claim of the assessee, the CIT(A) ought to have given an opportunity to the AO to comments or counter the claim of the assessee by producing the evidence or otherwise. 7. There is no finding by the CIT(A) whether the amount of loss claimed by the assessee on account of extinguishment of rights in respect of the shares of a defunct company is factually correct. Similarly with respect to the exemption u/s 54F on account of the capital....