TaxTMI 
TaxTMI 
2022 (9) TMI 716
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....e Supreme Court, vide order dated 10/01/2022, passed in M.A. no.21 of 2022, in M.A. no.665 of 2021, in Suo-Motu Writ Petition (Civil) no.3 of 2020, directed that the period from 15/03/2020 till 28/02/2022, shall stand excluded for the purpose of limitation as may be prescribed under any general or special laws in respect of all judicial and quasi judicial proceedings. As the due date for filing present appeal was falling within the aforesaid time-period, in view of the order passed by the Hon'ble Supreme Court, there is no delay in filing the present appeal and we proceed to decide the appeal on merits. 3. In this appeal, the assessee has raised following grounds: "1. BREACH OF THE PRINCIPLES OF NATURAL JUSTICE 1.1. The Learned Principal Commissioner of Income-tax- 11, Mumbai ["Ld. CIT"] erred in framing the revision order u/s 263 of the Income-tax Act, 1961 [the Act"] by not giving proper, sufficient and effective opportunity of being heard to the Appellant; 1.2 It is submitted that in the facts and the circumstances of the case, and in law, the revision order is required to be held as bad and illegal as the same is passed in breach of the principles ....
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....Departmental Representative could not bring anything on record to controvert the aforesaid submissions made by the learned counsel. 7. We have considered the submissions from both the sides and perused the material available on record. The assessee is a company engaged in the business of investment, financial activities and trading in shares and fabric. For the year under consideration, the assessee e-filed its return of income on 30/09/2015, declaring total income of Rs. 14,86,100. The assessee has shown income of Rs. 32,64,761 under the head income from business and profession, against which it claimed set off of brought forward business losses of Rs. 17,78,665, thereby declaring total income at Rs. 14,86,100. Besides this, the assessee has declared short term capital loss of Rs. 31,31,140, on sale of shares, which has been claimed as current year's loss eligible for being carried forward for future years for set off purposes. The Assessing Officer vide order dated 30/11/2017, passed under section 143(3) of the Act accepted the total income of the assessee as per return. 8. Subsequently, notice dated 28/01/2020, was issued under section 263 of the Act by the learned PCIT on....
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.... end of the financial year in which the order under section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Principal Commissioner or Commissioner: Provided that where the order under section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Principal Commissioner or Commissioner on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words "nine months", the words "twelve months" had been substituted." 10. In the present case, the impugned order under section 263 was passed by the learned PCIT on 05/03/2020 i.e. after 01/04/2019, therefore, applying the aforesaid provision of section 153(3) of the Act read along with the proviso, the time limit for passing any order by the Assessing Officer pursuant to impugned order passed under section 263 of the Act was up to 31/03/2021. In this regard, it is also pertinent to note tha....
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....us LTCG/STCG entries claimed by large number of beneficiaries. It was found that the promoters, brokers, operators in collusion had rigged the prices of 84 penny stocks to give accommodation entries of LTCG/STCG to the beneficiary and entries of losses to exit providers. The modus operandi involving operators, intermediaries and beneficiaries had been detailed in investigation: report prepared and disseminated by Investigation Wing, Kolkata. It was noticed from the list of 84 penny stocks available in public domain that M/s Sulabha Engg. was one of the stocks included in the list of penny stocks prepared by DIT(Inv), Kolkata. In view of findings of Investigation wing in respect of shares of M/s Sulabha Engg. the loss amounting to Rs.31.46,502/- from sale of shares of M/s. Sulabha Engg is bogus loss and carry forward of same cannot be allowed. The carry forward of the said loss has resulted in escapement of income comprising of short term capital gain of Rs. 15,361/- and excess carry forward of short term capital loss of Rs. 31,31,141/-. Therefore, it can be reasonably be concluded that there is a failure on the part of the assessee to disclose fully and truly all material facts nec....