2012 (12) TMI 1134 - AT - Income Tax

Summary

Issues involved:
The judgment involves an appeal by the Assessee contesting the Order u/s. 263 of the Income Tax Act 1961 regarding the assessment for the Assessment Year 2005-06.

First Issue - Set off of loss against dividend income:
The first issue pertains to the set off of loss on the sale of Units in ICICI Prudential Balance Fund against dividend income. The ld. CIT set aside the assessment as the AO did not examine this claim. The assessee explained that section 94(7) did not apply as the conditions were not met. The AO did not record satisfaction on this matter. The Tribunal found that there was no proper enquiry by the AO and confirmed the direction to redo the assessment.

Second Issue - Claim of interest against short term capital gains:
The second issue involves the claim of interest by the assessee against short term capital gains on the sale of three different scrips. The AO did not inquire about this claim during assessment. The Tribunal noted that there was no verification or application of mind by the AO in this matter. The direction to redo the assessment was confirmed, emphasizing that the views expressed during the hearing were not determinative and the matter required further deliberation.

The Tribunal upheld the impugned order and dismissed the assessee's appeal.