Chandravadan Desai v. PCIT (2021) 91 ITR 78 (SN) (Kol.)(Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Reassessment-Revision notice a verbatim copy of reasons recorded by Assessing Officer for reopening assessment-Assessing Officer Accepting returned income after verifying explanation-Revision by PCIT not sustainable. [S. 143(3), 147]

The show-cause notice issued by the Principal Commissioner under section 263 of the Act was a verbatim copy of the reasons recorded by the Assessing Officer under section 147 of the Act. During the reassessment proceedings under section 147 of the Act, the Assessing Officer had carried out a detailed enquiry and the assessee had duly explained that separate portfolios for trading and investments were maintained by the assessee. The transactions were carried out in separate dematerialised accounts and shares were received in these separate accounts. As the assessee had duly explained that separate portfolios were maintained and trading and investments transactions were carried out in a separate accounts from the very beginning and that there was no bar for the assessee to carry out both the trading and investment activities, the order passed under section 263 of the Act by the Principal Commissioner was not sustainable and was to be quashed. (AY. 2011-12 to 2014-15)