TaxTMI 
TaxTMI 
TaxTMI 
2022 (3) TMI 761
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....eturn of income on 25.03.2015 declaring total income of Rs. 4,09,470/-. The case of the assessee was re-opened under section 147 of the Act by issuing notice dated 29.09.2016 which was duly served upon the assessee. The main reasons recorded for reopening the assessment were that the information has been received from Directorate of Investigation that an organized racket of generating bogus entries of long term capital gain in penny stocks has been unearthed as a result of investigation carried out throughout the country and the beneficiaries have also been identified and assessee is one of the beneficiaries who has claimed exemption under section 10(38) of the Act in respect of long term capital gain. A summon under section 131 of the Act dated 29.09.2016 was issued to the assessee raising a query in respect of long term capital gain on sale of shares of ICVL Chemical Ltd. and the assessee complied with the said summon by filing details vide letter dated 29.09.2016 filed in tapal on 30.09.2016 giving all the details in respect of long term capital gain resulting from scrip of ICVL Chemical Ltd. as stated above. The reasons recorded were also mentioned that information has been rec....
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....on the assessee. The assessee replied to the said notice submitting therein that the revisionary jurisdiction under section 263 of the Act is not applicable to the present case as the issue qua the long term capital gain on sale of shares of ICVL Chemical Ltd. was duly examined by the AO during the assessment proceedings which culminated in the framing of assessment under section 143(3) read with section 147 of the Act vide order dated 28.12.2017. The Ld. A.R. submitted before the Ld. PCIT in reply to the show cause notice issued u/s 263 of the Act that the AO has reopened the case of the assessee for the specific reason to examine the issue of long term capital gain on sale of shares of ICVL Chemical Ltd. and thereafter during the course of assessment proceedings issued various notices under section 142(1) of the Act which were duly replied by filing all the details before the AO comprising the complete history of the purchase and sale of shares, copies D-mat account, contract notes, bank account, details of sale and purchase etc. and after taking into account all these details and written submissions of the assessee, the AO accepted the long term capital gain of the assessee in t....
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....e of his arguments relied on the following decisions of the Apex Court. 1. PCIT vs. Sumatichand Tolamal Gouti 111 taxmann.com 287 (SC) 2. PCIT vs. V. Dhana Reddy & Co. 100 taxmann.com 358(SC) 3. PCIT vs. Shree Gayatri Associates 106 taxmann.com 31 (SC) 4. CIT Central-III vs. Nirav Modi 71 taxmann.com 272 (Bombay HC) 4.1 The Ld. A.R. also submitted that the Ld. PCIT can not invoke the jurisdiction under section 263 of the Act to revise the assessment framed by the AO merely on the ground that there is no elaborate discussion in the assessment order by ignoring the fact that during the period of assessment proceedings as many as 4 notices under section 142(1) were issued and thereafter a show cause notice dated 20.12.2017 was issued which were duly replied by the assessee furnishing all the details comprehensively before the AO. The Ld. A.R. submitted that mere fact that there is no elaboration or discussion in the assessment order would not render the assessment as erroneous and prejudicial to the interest of the Revenue. In defense of his argument the Ld. Counsel of the assessee relied on the decision of Hon'ble Bombay High Court in the case of CIT vs. Gabriel India Ltd. 7....
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....n of Rs. 2,46,23,023/- resulting from the sale consideration of Rs. 3,51,91,068/- upon sale of shares of ICVL Chemical Ltd. During the re-assessment proceedings the AO issued several notices under section 142(1) dated 06.07.2017, 23.08.2017, 03.11.2017 & 15.12.2017 calling for the details in respect of sale of shares of ICVL Chemical Ltd. and the assessee has duly filed all the details/information/evidences before the AO in respect of sale of shares of ICVL Chemical Ltd. Finally, the AO issued show cause notices dated 20.12.2017 calling upon the assessee as to why the sale consideration including capital gain resulting from sale of shares of ICVL Chemical Ltd. should not be treated as non genuine under section 68 of the Act and added to the income of the assessee which was replied by the assessee vide written submission dated 26.12.2017. The AO after considering the written submission of the assessee accepted the claim of the assessee in respect of long term capital gain of Rs. 2,46,23,023/- under section 10(38) of the Act as genuine by accepting the return of income of the assessee. We note that the Ld. PCIT exercised the revisionary jurisdiction under section 263 of the Act on th....