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2014 (1) TMI 1025 - AT - Income TaxValidity of order u/s 263 - Held that:- On perusal of the assessment order in which there is no discussion regarding the issue relating to sale and purchase of shares - From the letters issued by the AO, it is clear that a detailed examination has been done by the AO regarding transactions of sale & purchase of shares entered into by the assessee - The correspondences entered into between the assessee and the AO, clearly reveals that the AO required the assessee to file various details, which were filed by the assessee - Regarding share purchased by the assessee from Prraneta Industries, the assessee has filed the proof of purchases in the shape of ledger account in the name of DPS Shares Securities Pvt. Ltd. In respect of transactions of the assessee regarding shares of Hiren Orgochem Ltd., it is pointed out to learned CIT by the assessee that 3500 shares were wrongly credited to demat account of the assessee and the said entry was reversed back - To support such contentions, assessee has submitted a copy of demat account - On this issue, learned CIT has not doubted the contention of the assessee and he has observed that adequate enquiry has not been made about the genuineness of the company as 7000 shares were purchased - These documents were produced by the assessee before the AO during the course of assessment proceedings, hence, it cannot be said that either the AO did not enquire about the issue of capital gain arising out of sale & purchase of shares or assessee did not furnish required information - The transactions are duly supported by the bills issued by the broker and are through stock exchange for which appropriate evidences were submitted. Section 263 has been invoked only for the reason that the AO did not apply his mind on these transactions - This finding of the learned CIT is against the correspondence and evidences which are placed on record by the assessee during the course of original assessment proceedings and copy of these documents are also filed before the Tribunal - Learned CIT also could not specify any discrepancy either in the rates of shares purchased and sold by the assessee or any incorrectness in the claim of the assessee regarding capital gain shown by the assessee as all the facts were again placed before him - In absence of any material to suggest that these transactions were not valid/genuine transactions, it will mere be a case of a change of opinion by the learned CIT - Mere non-discussion of the said issue by the AO in the assessment order, cannot lead to a conclusion that the AO has not applied his mind on that issue - Decided in favour of assessee.
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