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2022 (1) TMI 593 - AT - Income TaxRevision u/s 263 by CIT - genuine Capital gain/loss - case was selected for scrutiny under CASS and notice u/s. 143(2) and 142(1) - assessee also claimed deduction u/s. 54EC - HELD THAT:- We noticed from the record that the case of the assessee is selected for scrutiny for limited purpose in order to verify only the transactions relating to long term capital gain and accordingly, Assessing Officer issued notices and questionnaire to collect information from the assessee and from the record we noticed that assessee has submitted all the relevant information relating to long term capital gain and has submitted that same transactions were carried in A.Y.2015-16. Assessing Officer has verified the same and allowed the claim of the assessee. The informations submitted before us clearly indicate that AO has collected all the relevant information and the same Assessing Officer who has assessed the income of the assessee in the A.Y. 2015-16 wherein assessee has sold same shares and made investment and accordingly Assessing Officer has accepted the submissions of the assessee and taken one of the possible view that transactions are in order. Various courts have held that in order to invoke provisions of section 263 of the Act twin conditions has to be fulfilled i.e., not only erroneous but also has to be prejudicial to the interest of the Revenue. In the given case Ld. Pr.CIT has never found/quantified the prejudicial to the interest of the Revenue. In our considered view, he cannot invoke the provisions of section 263(1) when the Assessing Officer has made the enquiry and formed an opinion. The facts on record indicate that the issue involved are similar to the facts in the previous assessment year and also in the case of other family members. Ld. Pr.CIT has not brought nothing on record to show that Assessing Officer actually has passed the order without making any enquiry or verification. As found from the record that Assessing Officer has verified the transactions in the present assessment year as well as in the previous assessment year i.e. A.Y.2015-16. He reached the conclusion based on the verification he carried on in the previous assessment year and case of the other family members. Therefore Pr.CIT cannot invoke provisions of section 263 of the Act as well as Explanation 2 to section 263 of the Act in the present case when the Assessing Officer has made verification and also formed his opinion - Decided in favour of assessee.
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