TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 836
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....estion whereby the total income was also assessed at Rs.5,56,730/- as returned by the assessee. 3. The assessment carried out by the Assessing Officer was, however sought to be revised by the Pr.CIT. A show cause notice dated 19.12.2017 was issued to this effect. "Show cause notice under Section 263 of the Income Tax Act for A.Y. 2014-15- reg. ************** The Assessment for the A.Y. 2014-15 in your case was completed on 14.03.2016 u/s. 143 (3) of I.T. Act accepting the return income of Rs.5,56,730/-. It is seen from the records that the AO did not make proper enquiries, nor did investigate/verify various details filed and even omitted issues especially with respect suspicious transactions relating to Long Term Capital Gain on shares, rendering the assessment so made to be erroneous, so far as it is prejudicial to the interest of revenue. I therefore intend to revise the order passed on 14.03.2016 u/s. 143(3) of the I.T. Act for A.Y. 2014-15. You may attend on 28.12.2017 at 4:00 PM, in person or through your Authorized Representative and show cause why the order u/s. 143(3) of the IT. Act dated 14.03.2016 for AY 2014-15 should not be revised. Yours faithfully, Pr....
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....enny stock is totally unfounded. As submitted, the term 'Penny Stock' has not been defined under any enactment currently in force. There is no justifiable reason to attribute mala fides on the assessee merely because the Pr.CIT considers a transaction in particular stock to be penny stock. As further stated, the transactions have been carried out through the platform of the Stock Exchange and that too in 15000 number shares only. The shares were transacted through the intermediaries / Stock Brokers duly registered with the SEBI. The Pr.CIT has given undue considerations to the so called abnormal increase in the price by wrongly invoking the principles of preponderance of probabilities. It is trite that the degree or standard of proof required to establish a fact cannot be defined precisely. The drastic increase or decrease in the price of large number of shares in a given year is an ordinary phenomenon in the stock market where price discovery happens depending on host of uncertain factors both internal and external. The SEBI is the watchdog for any manipulative actions in the stock market. The assessee has entered into meager transactions of sale of mere 15000 shares held by it an....
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....the capital gain arising on the sale of shares already in discussion. Likewise, the gift was received from brother. Therefore, exercise of supervisory jurisdiction is wholly unjustifiable on the issue without making reference to circumstances which warrants necessity of verifications. The ld. counsel thus urged for setting aside the revisional order of the Pr.CIT in question and restoration of the assessment order. 7. The ld. DR for the Revenue, on the other hand, relied upon the revisional order and contended that the Assessing Officer has not exercised the due diligence expected of him while examining the issues involved which the Assessing Officer has failed to perform. It was submitted that the AO has merely accepted the documents placed before him without requisite enquiry thereon. The ld. DR referred to and relied upon the decision of the Tribunal in the case of Smt. Sudha Eashwar vs. ITO in ITA No.2342/Chny/2019 order dated 02.01.2020. The ld. DR accordingly submitted that the revisional commissioner has acted within four corners of law and consequently revisional action on the assessment order does not call for any interference. 8. We have carefully considered the rival s....
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....by way of initial SCN or in the course of subsequent revisional proceedings. 8.4 To appreciate the issues in perspective, we notice that specific queries were raised by the AO on both counts namely LTCG arising on sale of share of Turbotech as well as introduction of capital and gift received by the assessee during the year. The assessee in compliance of the inquiries so made by the Assessing Officer is stated to have filed the details and the evidences such as the proof of acquisition of shares, share certificates, contract note towards sale of shares and the demat account showing transfer of shares etc. giving rise to LTCG. It is also the case of the assessee that shares were transferred on the platform of the stock exchange through authorized brokers and no adverse report of the SEBI was confronted to the assessee either before the Assessing Officer or by the Pr.CIT in the revisional proceedings. The Assessing Officer did not find any reason to doubt such documents to launch further verifications which the Pr.CIT thinks, ought to have been done. Pertinently, the law does not necessarily require to stretch enquiries and verifications to the extent which may, at times, tantamount....