AI Drafter 
TaxTMI 
TaxTMI 
2018 (11) TMI 1928
X X X X Extracts X X X X
X X X X Extracts X X X X
....ian Ltd. holding the assessing officer to have failed to enquire into the details regarding the said transaction submitted during proceedings, passing the assessment order without application of mind and thereby not reaching the right conclusion, not appreciating that the assessing officer had actually verified the entire transaction and had accepted the same only after due enquiry and verification of details submitted and therefore the order u/s 263 setting aside this issue to the file of the assessing officer was not justified, 3. The learned Pr, CIT erred in setting aside to the file of the assessing officer the assessment framed by the assessing officer u/s 143 (3) of the I. Tax Act, 1961 on 29.11.2016 under the provisions of sec, 263 of the 1. Tax Act, 1961, which action is not appropriate as per law and facts and therefore the order u/s 263 dt. 16.03.2018 be held to be invalid and bad-in-law, 4. The appellant craves leave to add. alter, amend and/or vary any of the grounds at any time before the decision of the appeal." 3. The brief facts of the case are that the assessment of the assessee was completed u/s 143(3) of the I.T. Act, 1961 by virtue of order ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....The said long term capital gain was on account of sale proceeds of the shares of Sunrise Asian Ltd., which was marked in the list of penny stock company. The CIT was of the view that the AO nowhere raised the query nor discussed the matter in the assessment order. The CIT was also of the view that the assessment order was passed without making proper enquiry and verification. It is to be seen whether the assessment order dated 19.11.2016 is erroneous as well as prejudicial to the interest of the revenue or not. The contention of the Ld. Representative of the assessee is that the issue has properly been examined by the AO and one of the possible legally tenable view has been taken, therefore, the proceeding u/s 263 of the Act is bad in law. The Ld. Representative of the assessee has argued that the AO while issuing the notice u/s 142(1) dated 13.10.2016 has asked about the query in question and the assessee had also replied the same by virtue of letter dated 15.11.2016, 21.11.2016 & 29.11.2016, therefore, in the said circumstances, one possible view has been taken by the AO, therefore, the CIT has no ground to invoke the provision u/s 263 of the Act. It is also specifically argued t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f proceeding, the AO issued the notice u/s 143(1) of the Act, 1961 dated 13.10.2016. The notice contained by annexure in which various queries were raised and at the column no. 8, the AO asked the specific question regarding the transaction which is hereby reproduced below:- "An individual transaction statement for the F.Y. 2013-14 relating to the A.Y. 2014-15 is enclosed herewith, requested to reconcile the same with the supporting evidence." 8. The assessee replied to the said query by virtue of letter dated 21.11.2016.The detail is hereby reproduced below: - Date: 21.11.2016 To Office of the Income Tax Officer 16(2)(2), Room No. 443, 4th Floor, Aaykar Bhavan, MK Road, Mumbai-400020 Dear Sir, Re: Shri Arun S. Tripathi Pan No:ABGPT9629R A.Y.2014-15 Sub: Scrutiny assessment Proceedings In continuation of our earlier submission, please find enclosed herewith following details as desired by your good selves:- 1. Details of Bank A/c as per format along with Bank statements and Bank Summary is enclosed herewith. 2. Details of professi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ares. (vii) Statement showing receipt of sale consideration from the broker M/s. Atlanta Share Shopee Ltd. with photocopies of cheques. 5 Which lies at page no 11 to 14 of the paper book 6 Which lies at page no 15 to 31 of the paper book 7 Which lies at page no 32 to 95 of the paper book 8 Which lies at page no 96 of the paper book 9 Which lies at page no 97 to 99 of the paper book 10 Which lies at page no 100 to 101 of the paper book 11 Which lies at page no 125 to 137of the paper book 10. We had carefully gone through the evidences with regards to the sale transaction as produced before the AO / Pr. CIT 16, Mumbai are as under: (i) Share application form of M/s. Santoshima Lease Finance & Investment India Ltd. with photocopy of cheque and bank statement of Andhra Bank (ii) Debit note of M/s. Santoshima Trade Links Ltd. for grant of 125000 shares of M/s. Conart Traders Ltd. alongwith share application form, photocopy of share certificate. (iii) Documents recording scheme of amalgamation of M/s. Conart Traders Ltd. 48 to 111 with M/s. Sunrise Asian Ltd. (iv) Printout of depositor)' partici....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (vi) Moil Limited-vs-CIT, 396 ITR 244 (Bom) (201 7) 14. Undoubtedly, the AO raised the specific query which was replied specifically alongwith relevant documents by the assessee. The AO being satisfied with the query so raised and the documents so filed in support of various contentions did not make any adverse observation in the assessment order. Merely non discussion of the issue in the order nowhere make the assessment order as erroneous and prejudicial to the interest of the revenue. In response to the enquiry during asst. proceedings, the assessee vide letter dt. 21.11.2016 submitted the details of working of long term capital gains alongwith relevant supporting documents and explained that the sale of equity shares was through recognized stock exchange and STT was also paid on the said sale. The AO thereafter raised a query with regards to difference in sale consideration, as reported in ITS statement and as per the brokers ledger account submitted by the assessee. The assessee submitted explanation for the same vide letter dt. 29.1.1.2016 and reconciled the apparent difference of Rs. 1,80,480/- to be on account of STT, Service Tax and .other charges. The assesse....