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2019 (1) TMI 1630 - AT - Income TaxRevision u/s 263 - CIT stating that AO should have enquired the above claim of exempt long-term capital gain earned by the assessee on the basis of suspicious transaction - HELD THAT:- As the AO has neither carried out any enquiry with the 3rd parties such as the broker, stock exchanges, and most importantly the learned AO has not examined the assessee about the share transactions as directed by the CBDT. It is rather surprising that despite the case of the assessee was selected for verification of the suspicious transaction entered into by the assessee the AO has not carried out any enquiry and merely believed on the documents submitted by the assessee. There is complete lack of inquiry with the perspective for which case is selected for scrutiny. PCIT in his order has also given the issues on which AO has not made any inquiry. Further according to Explanation 2 to section 263 any order passed without making due inquiries which should have been made is an order erroneous and prejudicial to the interest of revenue. Therefore no infirmity in the order of the learned PCIT in assuming jurisdiction under section 263 of the income tax act and directing the assessing officer to make the necessary enquiry. No merit in the appeal of the assessee and the order passed by the learned CIT u/s 263 of the income tax act is upheld. - Decided against assessee.
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