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2019 (10) TMI 1395 - AT - Income TaxRevision u/s 263 - transfer of shares by way of gift - Capital gain chargeability - whether there is any prohibition of transfer of shares by way of gift by a company to another company? - HELD THAT:- When the assessee had duly explained that the transfer of shares by way of gift at Nil consideration could not be brought to tax as it is either exempt u/s 47(iii) or not taxable u/s 45 or 56 of the Act and more specifically when there is no prohibition of transfer of shares by way of gift by a company to another company by placing reliance on certain decisions which were placed on record by the ld AO, the action of the ld AO in duly considering and appreciating the same would not amount to non-consideration or non enquiry of the said issue both on facts as well as on law. This is a case where it could be safely concluded that the ld AO had duly made proper enquiries in the assessment by raising the relevant questions and assessee replying thereon and thereafter the ld AO on proper appreciation of facts and legal position thereon duly supported by various decisions that were placed on record, had taken a only possible view in the matter. Hence his order by any stretch of imagination cannot be construed as erroneous so as to warrant any revision u/s 263 of the Act by the ld CIT. We find that the ld CIT at the beginning of his show cause notice stated that no enquiry was made by the ld AO in the instant case on the subject mentioned transactions of gift of shares of Dish TV India Ltd by assessee to its related concern. But in the final para of his order stated that the ld AO had concluded without making proper enquiries. This shows the complete departure by the ld CIT from his show cause notice. We find that by his version in final para of his order, the ld CIT had conceded the fact that the ld AO had indeed made enquiries on the impugned issue of transfer of shares by way of gift to another related concern. Hence once an issue which had been enquired by the ld AO and assessee having given detailed reply explaining the purpose, factual and legal position thereon and ld AO having taken a possible view thereon, it cannot be said that the order passed by the ld AO is erroneous and hence no revision proceedings u/s 263 of the Act would lie on the same. - Appeal of the assessee is allowed.
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