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2022 (12) TMI 387 - AT - Income TaxValidity of order of CIT(A) allowing the claim of assessee - Earlier the order of revision made by CIT u/s 263 was quashed by the ITAT - As per CIT transaction of sale of shares was not looked into by the A.O. by not applying his mind and thereby allowing carry forward loss - PCIT remanded the matter to the A.O. to verify the legal tenability of the Special Purpose Vehicle (SPV), the source of evidences of SPV to acquire the shares of ABMWL, the valuation of shares of ABNL IT & ITES Limited and sale of shares - HELD THAT:- CIT(A) has allowed the claim of the assessee, pertaining to LTCL which is to be carry forward for set off in subsequent years. It is pertinent to point out that the ld. CIT(A) has passed the impugned order by placing reliance on the decision of the co-ordinate bench [2021 (5) TMI 791 - ITAT MUMBAI] which has quashed the order passed u/s. 263 on the ground that the assessment order passed u/s.143(3) was made after elaborate enquiry conducted by the A.O. based on which a possible view was taken, wherein the A.O. has stated that there was no misrepresentation of the facts by the assessee. Co-ordinate bench had held that the assessee has furnished all evidences and that section 263 proceeding was only based on borrowed satisfaction, i.e., audit objection and not on independent application of mind by the ld. Pr. CIT. The co-ordinate bench has also placed its reliance on the show cause notice issued by the ld. PCIT, wherein it has emphasized the fact that the language used by the Revenue audit party in it is audit objection was also the same as that which reflected in the show cause notice issued by ld. PCIT u/s.263 of the Act. In the present case, the ld. CIT(A) has held that on quashing of the order passed u/s.263 by the ld. PCIT, the assessment order u/s.143(3) r.w.s. 263 fails to survive on its own. On this ground, the ld. CIT(A) has allowed the impugned claim of the assessee. No infirmity in the order passed by the ld. CIT(A) in allowing the claim of the assessee as per the decision of the co-ordinate bench, quashing the order passed u/s. 263 and the subsequent assessment order u/s.143(3) r.w.s. 263 fails to have a legal sanctity - Appeal filed by the Revenue is dismissed.
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