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2014 (1) TMI 1499 - AT - Income TaxRevision u/s 263 of the Act – Profits from sale of short term capital gain – Held that:- Whether it can be said that the treatment given by the assessee to the profits arising from sale of shares as short term capital gain was accepted by the A.O. without making proper and adequate enquiry – Held that:- The order passed by the AO u/s 143(3) of the Act without making proper and adequate enquiry, as required in the facts of the given case, is one which is erroneous and prejudicial to the interest of the Revenue and the CIT has the power to revise the same u/s 263 of the Act - The assessee had furnished the details and documents required by the A.O. which were inclusive of the details of short term capital gain arising from the shares sold after 1-10-2004 liable to tax at special rate. The details were sufficient to ascertain the number of transactions, frequency of transaction, the period of holding, the volume of transactions etc. for the purpose of deciding whether the treatment given by the assessee to the profit arising from purchase and sale of shares was business income or short term capital gain - The CIT had come to a prima facie conclusion on the merit of the issue on the basis of the details already brought on record by the AO during the course of assessment proceedings and this fact by itself shows that proper and sufficient enquiry on the issue was duly made by the AO before accepting the treatment given by the assessee to the profits arising from sale of shares as short term capital gain - there was no error in the order of the AO passed u/s 143(3) of the Act as alleged by the CIT calling for revision u/s 263 of the Act –the order of the CIT(A) set aside and the matter remitted back to the AO – Decided in favour of Assessee.
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