TMI Blog2015 (2) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... and completed the assessment under Section 143 of the Act on 18.10.06. Therefore, this Court is of the considered view that the proceedings under Section 154 of the Income Tax Act is not justified in the facts and circumstances of the present case. In view of the above, this Court holds that the CIT (Appeals) was justified in setting aside the order of the Assessing Officer, which was subsequently confirmed by the Tribunal. - Decided against revenue. - T.C.A. NO. 732 OF 2014 - - - Dated:- 27-1-2015 - MR. R.SUDHAKAR AND MR. R.KARUPPIAH, JJ. For the Appellant : Mr. T.R. Senthil Kumar JUDGMENT (DELIVERED BY R.SUDHAKAR, J.) Aggrieved by the order dated 13.8.10, passed by the Income Tax Appellate Tribunal in dismissing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at a price of ₹ 85 Lakhs. On 26.2.04, the assessee received bonus units of 3,69,979.434. On 2.3.04, 4,20,603.713 units were redeemed for a sum of ₹ 43 Lakhs and the proportionate cost of the redeemed units was worked out by the assessee at ₹ 77,30,444/=. After setting off the consideration of ₹ 43 Lakhs received on redemption, the net loss was arrived at ₹ 34,30,444/=, which amount was claimed as short term capital loss by the assessee. The Assessing Officer was of the opinion that the redeemed units could be the original units or bonus units. It is the further stand of the Assessing Officer that even after redemption, 4,11,859.999 units were available with the assessee. Therefore, the assessing officer held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e original units or bonus units. The Tribunal further held that the Assessing Officer had presumed that Section 94 (8), which came into the statute through Finance (No.2) Act, 2004, with effect from 1.4.2005 was retrospective. However, such a view came to be clarified only after the Tribunal decided the issue in M/s.Marine Container Services (South) Pvt. Ltd. (ITA No. 384/Mds/2008 dated 18.7.08). The Tribunal was of the view that since the Assessing Officer himself was not sure whether the units sold by the assessee were original or bonus units in case of doubt or ambiguity, it was held by the Tribunal that the question of rectification does not arise. The Tribunal further held that the order under Section 154 of the Act could not be invoke ..... X X X X Extracts X X X X X X X X Extracts X X X X
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