TMI Blog2014 (1) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... r short term capital gain - The CIT had come to a prima facie conclusion on the merit of the issue on the basis of the details already brought on record by the AO during the course of assessment proceedings and this fact by itself shows that proper and sufficient enquiry on the issue was duly made by the AO before accepting the treatment given by the assessee to the profits arising from sale of shares as short term capital gain - there was no error in the order of the AO passed u/s 143(3) of the Act as alleged by the CIT calling for revision u/s 263 of the Act –the order of the CIT(A) set aside and the matter remitted back to the AO – Decided in favour of Assessee. - I.T.A. No. 1003 /Mum/2011 - - - Dated:- 14-8-2013 - Shri P. M. Jagtap, AM And Shri Sanjay Garg, JM,JJ. For the Appellant : Shri Vipul Joshi Shri Nishit Gandhi For the Respondent : Shri P. K. Shukla ORDER Per P. M. Jagtap, A.M. This appeal filed by the assessee is directed against the order of the ld. Dy. CIT - 11, Mumbai dtd. 29-12-2010 passed u/s 263 of the Income Tax Act, 1961 (the Act). 2. The assessee in the present case is an individual who is practicing as a doctor with specialization in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to invest his savings and capital in shares and securities and other financial instruments on a fairly long term basis to get better returns and the assessee has been doing such investments for many years. It was stated that in the assessee's case there are on an average just 8-10 purchases/sale transactions in a month and in fact in few months there was no single sale/purchase instance. However due to change in market scenario sometime he has to offload the investments to minimize the risk of values getting eroded considerably or the realize investment opportunities when the target is surpassed. Further in order to distribute the risk the assessee made investments in different stocks and different companies with the sole intention of the assessee to earn good returns in the form of dividend and bonus on investments. It is further stated that on an average, holding period for the shares is more than 2 months and in some cases over a year also. Attention is also drawn to the fact that assessee has huge capital of Rs.3.29 crores and there is no borrowing. The only loan taken during the year was from his wife that too interest free. It was argued that the high volumes in itself wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice dated 26-9-2008 issued by the A.O. u/s 142(1) of the Act along with Annexure thereto placed at page 30 and 31 of his paper book and submitted that the copies of broker's notes in respect of purchase and sale of shares/units as well as copy of the D-mat account of the assessee were required to be furnished by the A.O. during the course of assessment proceedings. He pointed out that even the details of short term capital gain giving date-wise purchase/sale with copies of broker's bills were called for by the A.O. He then invited our attention to the reply dated 14th October, 2008 given by the assessee to the notice issued by the A.O. u/s 143(3) of the Act placed at page 32 to 33 of his paper book along with Annexure thereto placed at page 35 to 59-C of his paper book to show that all the relevant details and documents required by the A.O. were duly furnished by the assessee in order to substantiate the treatment given to profit arising from sale of shares as short term capital gain. He contended that on the basis of thes details and documents furnished by the assessee, the treatment given by him to the profit arising from shares as short term capital gain was accepted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said in the facts and circumstances of the present case that the treatment given by the assessee to the profits arising from sale of shares as short term capital gain was accepted by the A.O. without making proper and adequate enquiry as alleged by the ld. CIT in his impugned order. In this regard, it is observed that a notice u/s 142(1) of the Act was issued by the A.O. on 26-9-2008 to the assessee during the course of assessment proceedings requiring the assessee to furnish certain details and documents as required for the purpose of assessment for the year under consideration. The details and documents so required were listed in the Annexure to the said notice and a perusal of the copy of the said Annexure placed at page 31 of the assessee's paper book shows that the details of computation of short term capital gain giving date-wise purchases/sale were called for by the A.O. along with corresponding copies of broker's bill. The assessee was also required by the A.O. to furnish the copy of his D-mat account. In reply to the said notice filed vide letter dtd. 14th October, 2008, the assessee had furnished the details and documents required by the A.O. which were inclusive of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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