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2022 (8) TMI 570 - ITAT CHENNAIRevision u/s 263 by CIT - profit derived from purchase and sale of shares - profit derived from share transactions to be assessed under the head ‘income from business or profession’ OR 'capital gain' - AO noticed that the assessee has derived short term capital gain from investment activity and accordingly, assessed short term capital gain u/s.111A and levied tax @ 15% - HELD THAT:- If we examine reasons given by the PCIT, we find there is no merit in reasons given by the PCIT to term the assessment order as erroneous, insofar 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 AO 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. When the AO has taken one possible view, after considering relevant materials, then there is no scope for the PCIT to assume jurisdiction u/s.263 of the Act and set aside the assessment order, because the PCIT can assume jurisdiction in a case, where there is lack of inquiry, however, the PCIT cannot set aside the assessment order for inadequate inquiry. In this case, it is abundantly clear that the Assessing Officer has verified the issue and taken one possible view. There is no scope for the PCIT to revise assessment order u/s.263 because the PCIT has failed to make out a case of erroneous order passed by the AO, which caused prejudice to the interest of the Revenue, which is precondition for invoking jurisdiction u/s.263 of the Income Tax Act, 1961 as held in the case of Malabar Industrial Co. [2000 (2) TMI 10 - SUPREME COURT]. Hence, we quash order passed by the learned PCIT u/s.263 - Decided in favour of assessee.
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