9911796707
TMI Blog2023 (6) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... erned by its own set of facts. The applicability of Section 263 was not the subject matter of controversy therein. 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. 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 and no adverse SEBI report is available implicating the assessee for any concerted or manipulative action which may give rise to any kind of suspicion of any fictions gains. The order of co-ordinate Bench does not tend to remove the fetters placed on the scope of Section 263 under consideration in the present case. So ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :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. Commissioner of Income Tax-13, New Delhi. 4. The Pr.CIT eventually set aside the assessment order framed under Section 143(3) and directed the Assessing Officer to redo the assessment in terms of observations made in revisional order. 5. Aggrieved by the revisional order, the assessee preferred appeal before the ITAT seeking to challenge the revisional order. 6. When the matter was called for hearing, the ld. counsel for the assessee adverted to the solitary show cause notice and submitted that the show cause notice broadly alleges failure of the Assessing Officer to investigate/verify details filed in respect of suspicious transactions relating to Long Term Capital Gain on shares rendering the assessment so made to be erroneous in so far as it is prejudicial to the interest of the revenue. 6.1 In this regard, the ld. counsel for the assessee submitted that the case was selected for scrutiny mainly on the grounds of suspicious transactions of Long Term Capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 and no adverse SEBI report is available implicating the assessee for any concerted or manipulative action which may give rise to any kind of suspicion of any fictions gains. As further asserted, the AO in its own wisdom has taken a plausible view in discharge of his quasi-judicial function based on facts available to him. The view taken by the Assessing Officer thus cannot be outrightly rejected and branded as erroneous per se within the sweep of supervisory jurisdiction by invoking doctrine of preponderance of probabilities. 6.2 The ld. counsel thus contended that the Assessing Officer has taken a fair view in the totality of circumstances which is not capable of casual displacement by a set aside action in the absence of any cogent material in the possession of the Pr.CIT. The Pr.CIT has sought to dislodge a quasi-judicial action in a casual manner simply because in his opinion a greater inquiry in the issue was needed. The ld. counsel submitted that expecting an Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 submissions and perused the revisional order passed by the Pr.CIT under Section 263 of the Act as well as other materials referred to and relied upon by the respective parties and case laws cited. 8.1 Supervisory jurisdiction vested under Section 263 of the Act enables the concerned Pr.CIT/CIT to review the records of any proceedings and order passed therein by the AO. It empowers the Revisional Commissioner concerned to call for and examine the records of another proceeding under the Act and if he considers that any order passed therein by the AO is erroneous in so far as it is prejudicial to the interest of the Revenue, then he may (after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary), pass such order thereon as the circumstances of the case justify, including the order enhancing or modifying the assessment or cancelling the assessment and directing afresh assessment. Thus, the revi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 to oppression and harassment of a tax payer. The Assessing Officer, in the instant case, has arrived at a conclusion after collecting requisite evidences of external nature and in the absence of any adverse material per se, came to a conclusion which is plausible for a reasonable person instructed in law. The object of revisional power is not to impinge upon the powers of the Assessing Officer to frame the assessment and interfere therewith in all cases merely on account of some inadequacy in manner and extent of enquiry. 8.5 As regards introduction of capital and gift from brothers, the case of assessee are two folds (i) No opportunity was given to Assessee in clear violation of natural justice expressly provided in Section 263 and thus revisional action could not be taken at first place (ii) the introduction of capital was pre-dominantly by way of LTCG of Rs.47.50 lakh and reversal of some expenses entries. The fact of gift from brother Rs.5 lakh wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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