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2020 (1) TMI 1025 - AT - Income TaxRevision u/s 263 - assessee has claimed as exempt long term capital gains (LTCG) seemed to be bogus - HELD THAT:- Assessee has claimed exempt LTCG by trading in shares of LTL. The details filed by the assessee during the course of assessment proceedings have not been examined and inquired into by the AO. This is evident from the assessment order produced above and also from the documents available on record. One cannot miss the proposition that assessment made without inquiry is prejudicial to the interest of revenue. In Rampyari Devi Saraogi [1967 (5) TMI 10 - SUPREME COURT] it is held in order that the Commissioner may consider an order to be “erroneous” for the purposes of section 263, the error of law may not be apparent on the face of the order, the Commissioner may consider an order of the Assessing Officer to be erroneous not only if it contains some apparent error of reasoning or of law or of fact on the face of it but also because it is a stereo-typed order which simply accepts what the assessee has stated in his return and fails to make inquiries which are called for in the circumstances of the case. In view of the above position of law enunciated in Rampyari Devi Saraogi (supra) and because the AO has completed the assessment in undue haste or without inquiry, the Pr. CIT has rightly exercised his power u/s 263 by holding that the order of the AO is erroneous and prejudicial to the interest of revenue. However, it is too early on the part of the Pr. CIT to direct the AO to redo the assessment so that abuse of provision of section 10(38) is prevented and income is brought to tax in light of recent judgments in penny stock cases. We modify the above direction of the Pr. CIT and direct the AO to frame an order as per the provisions of the Act, after providing reasonable opportunity of being heard to the assessee. We direct the assessee to file the relevant documents/evidence before the AO.
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