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2020 (12) TMI 658 - AT - Income TaxRectification u/s 154 - reject assessee’s claim of carry forward of long term capital loss on sale of shares - HELD THAT:- After examining the issue we find that the Assessing Officer in rectification proceedings has given a finding of fact that Short Term Capital Loss declared by the assessee on sale of shares is the result of sham transaction and falls within the ambit of provisions of section 47(v) - AO in proceedings under section 143(3) of the Act accepted the claim of assessee and thereafter on re-appreciation of facts initiated proceedings u/s 154 to disallow assessee’s claim of carry forward of Short Term Capital Loss terming the transaction to be sham. Assessing Officer has revisited the issue and has invoked rectification provision to review his order. As we have pointed earlier that the Assessing Officer has limited scope under section 154 of the Act to rectify any mistake apparent from the record. Substitution of opinion by the Assessing Officer under section 154 of the Act is not permissible. We may point here that the Act provides safeguards to the Revenue to plug the escapement of any income. The cannons in the form of revision under section 263 of the Act, reassessment under section 147 of the Act and rectification of mistake under section 154 of the Act have to be used appropriately. The remedies available to the Revenue under the Act are not mutually alternate. The right cannon has to be fired at right time depending on facts and circumstances of each case. The Assessing Officer in the present case has over stepped his jurisdiction in exercising his powers u/s. 154 to review his order.
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