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2018 (4) TMI 744 - AT - Income TaxRevision u/s 263 - allowability of expenditure on forfeiture of shares as capital expenditure and not revenue expenditure” - Held that:- We find that there is no dispute about the loss that was incurred by the assessee, on not subscribing to the full value of the shares. The assessee has filed the copies of the balance sheets along with the relevant schedules to prove that the assessee has been trading in shares and has been treating the shares as current assets all along. Even before the AO, the assessee had stated to be a trader in shares and therefore, the treatment of the loss on forfeiture of shares is correctly accepted by the AO as revenue loss. Thus, the AO has accepted one of the possible views and there is no erroneous application of law, making the assessment order erroneous and prejudicial to the interest of revenue. We find that the CIT has not considered this issue. We accordingly set aside the order of CIT u/s 263 and restore the order of the AO dated 30.03.2015.
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