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2020 (11) TMI 370 - AT - Income TaxRevision u/s 263 - loss on sale of shares - HELD THAT:- As during the assessment proceedings u/s 143(3) of the Act, vide notice u/s 142(1) AO had required the assessee to furnish the details of loss on sale of shares. The assessee vide letter dated 29.2.2016 had explained that the loss is on account of sale of shares and vide letter dated 14.3.2016, the circumstances under which such loss was incurred was explained. It appears that the AO has allowed the business loss claimed by the assessee only after considering the reply of the assessee. As held in a number of cases that the AO may not record anything in the assessment order if he was inclined to allow the claim of assessee. Therefore, non-mentioning of the reasons for allowing the claim, will not make the assessment order erroneous. To hold the assessment order to be erroneous it has to be stablished that the AO had not applied his mind to the facts of the case or that he has not applied the correct law or has not appreciated the facts correctly. Thus, the assessment order cannot be held to be prejudicial to the interests of the revenue on this issue. Set-off of unabsorbed depreciation from the income - unabsorbed depreciation of the partnership firm, the business of which has been taken over by the assessee in his individual capacity, which has been set off by the assessee from his income as an individual - Succession to business otherwise than on death - HELD THAT:- Consequences on retirement of all the partners except one of a partnership firm is that the partnership firm gets dissolved because, for a partnership to exist, there has to be more than one partner. On retirement of all the partners except one, the partnership firm gets dissolved and if the sole partner carries on the business it becomes a proprietary concern. In view of the Section 32(2) of the Act, the unabsorbed depreciation becomes the depreciation of the current year of the business and the same is eligible for set off against the individual income of the assessee u/s 170 of the Act as he is the successor to the business. Capital gain Computation - application of Sec.50C - difference between the sale consideration received by the assessee and the SRO value - HELD THAT:- In the case before us, it is the difference between the sale consideration received by the assessee and the SRO value. Sec.50C as it prevailed at that point of time, does not make any discount in respect of difference between the SRO value and the sale consideration received by the assessee. Therefore, order of CIT on the application of Sec.50C is confirmed. Short term capital loss claimed by the assessee against the sale of vehicle - As submitted submitted that the provisions of Sec.50 are applicable to this case and since the assessee has committed an error in the computation and the AO has not looked into it - HELD THAT:- Having regard to rival contentions particularly the contention of the assessee that there is a mistake in the computation of income by the assessee in relation to the loss on sale of car, we deem it fit and proper to direct the AO to reconsider the issue in accordance with law. Assessee’s appeal is partly allowed.
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