TaxTMI 
TaxTMI 
2023 (11) TMI 1267
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....sessee in the various grounds of appeal is against the invalid exercise of revisionary jurisdiction u/s 263 of the Act thereby passing an order u/s 263 of the Act and setting aside the assessment framed u/s 143(3) of the Act dated 20.12.2018. 3. Facts in brief are that the assessee filed return of income on 4.10.2016 declaring total loss of Rs. 1,40,89,078/-. The case of the assessee was selected for scrutiny and assessment was framed u/s 143(3) of the Act vide order dated 20.12.2018 assessing total loss of Rs. 54,56,223/-. The said assessment was rectified u/s 154 of the Act on 19.02.2019 with the said loss of Rs. 54,56,223/- allowing the same loss as business loss to be carried forward to be set off in the subsequent years. Thereafter th....
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....d to frame the assessment afresh in accordance with law after allowing the reasonable opportunity to the assessee. The PCIT also noted that the AO has failed to enquire into the nature of LTCG and its genuineness, as it relates to penny stock and therefore the same should be added back and thus the AO has passed the order without making enquiries which should have been made and accordingly Clause (c ) of Explanation 2 to Section 263(1) was attracted. 4. The Ld. A.R vehemently submitted before us that the order passed by the AO is neither erroneous nor prejudicial to the interest of the revenue. During the course of assessment proceedings all the issues as proposed by the PCIT in the revisionary order were examined by the AO after calling f....
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....merit. The Ld. A.R submitted that the issue raised by the PCIT is factually and legally incorrect. The Ld. A.R referred to the decision of Hon'ble Apex Court in the case of Snowtex Investment Ltd. vs. PCIT in Civil Appeal No. 4483 of 2019 Arising out of SLP ( c) No. 20017 of 2017 dated 30.04.2019 wherein the Hon'ble Apex Court has held that the business of futures and options did not constitute profits and gains of a speculative business. The Ld. A.R also referred to the decision of the Co-ordinate Bench in the case of DCIT vs. M/s Unisys Software And Holding Industries Limited in ITA NO. 57/Kol/2019 for AY 2014-15 wherein it was held as under: "13. We have heard the arguments of both the sides and also perused the relevant material avail....
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....evidences from the assessee has taken a plausible view by accepting the explanation of the assessee which in our opinion is neither against the facts on record nor against the provision of the Act. Therefore on this count alone, the jurisdiction u/s 263 exercised by the PCIT cannot be justified. In the present case, we observe from the order passed by the PCIT that he has stated that the order passed by AO appears to be prima facie to be erroneous which is again is not correct and not as per the provision of Act. In our opinion, the PCIT has to record a clear cut finding after carrying out enquiry into the issue and record a finding as to how the order is erroneous and prejudicial to the interest of the revenue as has been decided in the ca....