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2021 (9) TMI 1167 - AT - Income TaxRevision u/s 263 by CIT - short term capital loss from three scrips - As per PCIT, the AO has not enquired into this issue making the order passed by the AO erroneous as well as prejudicial to the revenue - HELD THAT:- The assessee an NBFC has shown revenue from sale of shares which has not been found fault by the Ld. PCIT, whereas the loss claimed from sale of shares have been found to be at fault for AO not conducting proper enquiry i.e. Ld. PCIT was aware that enquiry was conducted so it is a case of inadequate enquiry by the Ld. PCIT itself. In such a scenario, the Ld. PCIT ought to have conducted enquiry by himself and recorded his finding as to how the AO erred in his role as an investigator and also must be able to demonstrate how the view of AO on the facts of the case was unsustainable in law. We presume that the AO has discharged his duty as an investigator on the issue of loss on the scrips in question and after taking note of CBDT circular No. 287/30/2014-IT(Inv. II)-Vol-III dated 16.03.2016 on penny stock and thereafter conducted the enquiry. And after perusal of the reply of the assessee to the specific queries and details called for and after perusal of the supporting materials, the AO being satisfied has accepted the claim of assessee in respect of loss on these scrips. Therefore the AO's action of accepting loss on the three (3) scrips cannot be termed as a case of no-enquiry on the part of the AO. Pre-condition to invoke revisional jurisdiction u/s. 263 of the Act is absent and therefore the Ld. PCIT has invoked the jurisdiction without satisfying the condition precedent i.e. the AO's action should be validly held to be erroneous as well as prejudicial to the revenue. Therefore, the impugned action of Ld. PCIT is without jurisdiction and therefore the impugned order is nullify. - Decided in favour of assessee.
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