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2020 (4) TMI 367 - AT - Income TaxRevision u/s 263 - default in allowing LTCL by AO - AO has during the course of assessment proceeding only called for routine details and has not delved in detail or made necessary inquiries on the issue of Long Term Capital Loss and investigation on such issues which should have been made - As per CIT AO accepted assessee’s submission and did not make any further queries regarding the ownership, actual transfer, delivery/handing over possession etc of the said property - HELD THAT:- Without any specific enquiry on the subject by the assessing officer, the assessee has tried to pass off the information about how the said long term capital loss to be carried forward arose under a misleading heading of “note on allowability of provision written back". Admittedly the claim of long-term capital loss to be carried forward on account of writing off of advance given for machinery, is itself erroneous, and hence the allowance thereof cannot be legally sustained on the ground that the same is conscious application of mind by AO. Moreover passing off this information under the heading "note on allowability of provision of written back" is more in nature of misleading than providing proper information. This is because writing off of advances for machinery and claiming the same as long-term capital loss to be carried forward has nothing to do with "note on allowability of provision written back". Accordingly, in our considered opinion the submission that there is enquiry and application of mind by the assessing officer is not all sustainable. Hence Ld CIT is quite justified in invoking jurisdiction under section 263 of the income tax act, hence we uphold the order of Id CIT. We note that this is appeal against an order of Ld CIT passed under section 263 of the I-T Act Hence we are confining ourselves to the order passed under section 263 of the I-T Act. - Decided against assessee.
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