TaxTMI 
TaxTMI 
2019 (7) TMI 744
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....n in the assessment order is "Income from Long Term Capital Gains on Shares". In this case, return of income was filed on 31.03.2005 showing income of Rs. 5,25,960/-. The case was selected for scrutiny under CASS for reasons of suspicious long term capital gains on shares. Statutory notices were issued time to time. Assessee attended the proceedings before A.O. filed written submissions along with copy of computation of income, audit report, Trading & Profit & Loss Account & Balance-sheet. The A.O. noted that in response to the notice issued, assessee has furnished written submissions along with copy of Demat A/c, source of investment in shares, bank account, copy of share certificates, copy of account of Mathiyan Construction and same is t....
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....there is no case of failure to make any enquiry at the assessment stage. The assessee relied upon several decisions in support of the contention. Ld. Pr. CIT, however, found that Order have been passed without making proper enquiry on the above issues despite case was selected for scrutiny. Hence, the case is covered by Clause (a) of Explanation-2 of Section 263(1) of the I.T. Act. Ld. Pr. CIT also noted that report of Investigation Wing were not utilised by the A.O. Further, A.O. did not make any enquiry on the issues stated in the notice. Therefore, assessment order was set aside with a direction to the A.O. to pass assessment order afresh in accordance with the provisions of Law. 4. The assessee is in appeal challenging the impugned o....
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....es and material on record. Learned Counsel for the Assessee submitted that since due enquiries have been made by the A.O. but the Pr. CIT is trying to impose her view on the plausible view taken by the A.O. which is not permissible under the Law. She has relied upon CIT vs. Sunbeam Auto Ltd., [2011] 332 ITR 167 (Del.). Learned Counsel for the Assessee also relied upon Judgment of Hon'ble Bombay High Court in the case of Gabriel India Ltd., [1993] 203 ITR 108 (Bom.). She has also submitted that Ld. Pr. CIT has invoked Explanation-2 to Section 263 of the I.T. Act which cannot be invoked in the case of inadequate enquiry and also this Explanation is applicable w.e.f. A.Y. 2015-2016 and hence, not applicable to assessment year under appeal. Lea....
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....der that written submissions of the assessee along with copies of Demat account, source of investment in shares, bank account, copies of share certificates, copy of account of Mathiyan Construction are placed on record. It would, therefore, prove that A.O. examined the issue of long term capital gains with reference to sale of shares at assessment stage in the light of evidence and material on record. Thus the reasons for which the case was selected for scrutiny have been satisfied by the A.O. Learned Counsel for the Assessee has pointed out several documents in the paper book to show that on the issue of long term capital gains, A.O. raised a query to the assessee which is duly responded by assessee supported by all the documentary evid....
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.... earned by assessee. This information must be based on information received from Investigation Wing. Therefore, Ld. D.R. was not justified in contending that report of Investigation Wing have not been considered by the A.O. Since it was the sole reason for completing the scrutiny assessment, therefore, it could not be believed that A.O. would not have gone through the material available before him on record. May be the A.O. has not discussed the details in the assessment order but it would not give right to the Ld. Pr. CIT to hold that no investigation or enquiry have been made at assessment stage. It appears that A.O. has taken one of permissible view in the matter as per Law and if the Ld.Pr. CIT does not agree with the view of the A.O, t....