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2016 (3) TMI 747

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....23.12.2011 for assessment year 2009-10. Ground raised by assessee is below:- "1. For that on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax erred both on facts and in law in directing the assessing officer to carry out enquiry and investigation on the line suggested in the order u/s. 263 and compute the total income accordingly without appreciating the facts and submissions from its proper perspective. 2. For that on the facts and in the circumstances of the case, the order passed by the Ld. Commissioner of Income Tax us. 263 of the I.T. Act is bad-in-law, biased, unjust and not sustainable in the eye of law." 2. The issue raised by the assessee in this appeal is that the ld. CIT erred in treating ....

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....essee earned interest income during the year on fixed deposits for an amount of Rs. 1,42,788.00 as depicted from the form 26AS. But the assessee claimed that out of the above interest a sum of interest for Rs. 64,100.00 was offered for tax in the earlier years. But this fact has not been examined by the AO at the time of assessment. 3) There was survey at the premises of the assessee under section 133A of the Act. However there was no addition made in the assessment of the assessee as a result of survey. There is no mentioned about the tax evasion detected during survey. Besides no survey folder was made available during the proceedings under section 263 of the Act. However the Ld. CIT disregarded the submission of the assessee and held t....

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....nt and the revenue authority must have considered the necessary details from the survey folders. From the aforesaid discussion we find that the ld. CIT treated the order of the AO as erroneous and prejudicial to the interest of Revenue as the AO failed to consider certain issues at the time of assessment. However from the submission of the assessee we find that all the issues raised in the order under section 263 of the Act were duly considered by the AO. Now to arrive at the correct conclusion of the case, we deem it necessary to reproduce the relevant provisions of section 263 of the Act. (1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the [....

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...."9. You are requested to furnish details of i) Loss on sale of share with all supporting papers and ii) Loss A/c future option share with all supporting documents stating a) Opening Balance stating name of shares/future option b) Purchase value with dates c) Sales value with dates d) Dividend received e) Closing balance in both the cases." The reply of the assessee is placed on page 16 of the paper book which is reproduced below : "Loss on Future Option As per Income Tax Act Profit & Loss from Future Option trading is treated as normal business income or loss. The character of transaction in respect of speculation trading and future trading is defined under subsection- 5 of section 43, It clearly states that an eligible transaction i....

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....ate of Int.1 Accru ed Int. As on 31.03 .09 Less Matur ed Net Total as on 31.03. 09                           " The reply of the assessee is placed on page 18 of the paper book which is reproduced below : "Accrued Interest on Fixed Deposit A fixed deposit was made for Rs. 7,00,000/- (1,00,000 x 7) with Indian bank on 5-3-07. Against such fixed deposit a sum of Rs. 4,100/- was shown and taxed as accrued interest for asstt. Year 2007-08 and RSs.54,750/- out of total accrued interest of Rs. 60,000/- was taxed as accrued interest for asstt. Year 2008-09. As such on maturity of the said F/D. in the relevant year the gross interest is to be reduce....