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2022 (9) TMI 452 - AT - Income TaxRectification u/s 154 - treatment to loss on sale of shares claimed as a trading loss or capital loss - AO has initiated proceeding u/s 154 qua the claim of loss on the ground that the shares were held as investment and not as stock in trade - HELD THAT:- As in reply to show-cause notice issued under section 154 of the Act, the assessee has clearly and categorically submitted that the shares were held as stock in trade and the issue was examined in course of scrutiny assessment. Thus, from the aforesaid facts, it is patent and obvious that the issue, whether the loss on sale of shares claimed by the assessee is a trading loss or capital loss is a highly debatable issue. That being the factual position emerging on record, in my considered opinion, proceeding under section 154 of the Act could not have been initiated by the Assessing Officer to rectify the so called mistake as it is not a mistake in the nature of mistake apparent on the fact of record. Therefore, we delete the addition - Ground raised is allowed.
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