2022 (8) TMI 570

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see is an individual engaged in investments into equity shares. The assessee has filed return of income for the assessment year 2015-16 on 28.08.2015 declaring total income of Rs.10,79,970/-. The case was taken up for scrutiny and during the course of assessment proceedings, the Assessing Officer noticed that the assessee has derived short term capital gain from investment activity and accordingly, assessed short term capital gain u/s.111A of the Income Tax Act, 1961, and levied tax @ 15%. The case has been subsequently taken up for revision proceedings and consequently, show cause notice u/s. 263 of the Income Tax Act, 1961, was issued and called upon the assessee to explain as to why profit derived from share transactions cannot be assess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....esulted in erroneous order passed by the Assessing Officer, insofar as it is pre-judicial to the interests of the Revenue and thus, set aside assessment order passed by the Assessing Officer and directed the Assessing Officer to redo the assessment with a direction to examine aspect discussed in the order passed u/s.263 of the Income Tax Act, 1961. 4. The learned AR for the assessee submitted that the PCIT erred in assuming jurisdiction u/s.263 of the Act, and set aside assessment order without appreciating fact that the Assessing Officer has considered very same issue and has taken one possible view and thus, on the very same issue, the PCIT cannot take different view on the guise of insufficient inquiry or inadequate inquiry. 5. The....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ofar as it is pre-judicial to the interests of the Revenue, because very same issue of profits derived from share transactions was subject matter of 143(3) assessment proceedings before the Assessing Officer, where the Assessing Officer has discussed the issue in the assessment order dated 15.12.2017 and after considering relevant details filed by the assessee, assessed profits under the head 'short term capital gain' and further determined profit derived for the year at Rs.10 lakhs and levied 15% tax in terms of section 111A of the Income Tax Act, 1961. In our considered view, when the Assessing Officer has taken one possible view, after considering relevant materials, then there is no scope for the PCIT to assume jurisdiction u/s.263 of t....