The assessment was \u00a0reopened under Section 147 and assessment was finalized, by accepting returned income.\u00a0 PCIT held\u00a0 that assessee undertook transaction of trading in shares of ECL, a penny stock and modus operandi of whole business was to facilitate introduction of unaccounted income in form of exempt capital gain or short term capital loss, over years. PCIT held\u00a0 that Assessing Officer failed to analyze documents to verify genuineness of transaction and set-aside assessment order as being erroneous and prejudicial to interest of Revenue. Tribunal held\u00a0 that\u00a0\u00a0 since assessee had dealt in shares relating to penny stock companies and it had neither declared Long Term Capital Losses on sale of shares of ECL nor declared LTCG on sale of shares of Saya assessee had not filed it\u2019s return of income correctly. Since Assessing Officer failed to enquire into these important aspects which were both not reflecting in return of income, assessment order passed by Assessing Officer is\u00a0 erroneous in so far as prejudicial to interest of Revenue. (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Capital gains-Penny stock-Failure to make enquires-Revision is held to be valid.[S. 45, 147, 148] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50642","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-daO","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50642"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50642\/revisions"}],"predecessor-version":[{"id":50643,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50642\/revisions\/50643"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}