TMI Blog2019 (7) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... sale consideration have been received by assessee through banking channel. The transaction was conducted through the Demat account. A.O. after making a deep investigation into the issue of long term capital gains also noted in the assessment order that written submissions of the assessee along with copies of Demat account, source of investment in shares, bank account, copies of share certificates, copy of account of Mathiyan Construction are placed on record. It would, therefore, prove that A.O. examined the issue of long term capital gains with reference to sale of shares at assessment stage in the light of evidence and material on record. Thus the reasons for which the case was selected for scrutiny have been satisfied by the A.O. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961, for the A.Y. 2014-2015. 2. Brief facts of the case are that assessee is an individual and nature of business as shown in the assessment order is Income from Long Term Capital Gains on Shares . In this case, return of income was filed on 31.03.2005 showing income of ₹ 5,25,960/-. The case was selected for scrutiny under CASS for reasons of suspicious long term capital gains on shares. Statutory notices were issued time to time. Assessee attended the proceedings before A.O. filed written submissions along with copy of computation of income, audit report, Trading Profit Loss Account Balance-sheet. The A.O. noted that in response to the notice issued, assessee has furnished written submissions along with c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which the assessee highlighted that detailed replies along with documentary evidences were filed before A.O. on the issues time to time which have been examined by the A.O. Therefore, there is no case of failure to make any enquiry at the assessment stage. The assessee relied upon several decisions in support of the contention. Ld. Pr. CIT, however, found that Order have been passed without making proper enquiry on the above issues despite case was selected for scrutiny. Hence, the case is covered by Clause (a) of Explanation-2 of Section 263(1) of the I.T. Act. Ld. Pr. CIT also noted that report of Investigation Wing were not utilised by the A.O. Further, A.O. did not make any enquiry on the issues stated in the notice. Therefore, assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een explained. The assessee also filed copy of the share certificates, bank accounts and other details to show that all the three issues have been examined by the A.O. with reference to the evidences and material on record. Learned Counsel for the Assessee submitted that since due enquiries have been made by the A.O. but the Pr. CIT is trying to impose her view on the plausible view taken by the A.O. which is not permissible under the Law. She has relied upon CIT vs. Sunbeam Auto Ltd., [2011] 332 ITR 167 (Del.). Learned Counsel for the Assessee also relied upon Judgment of Hon ble Bombay High Court in the case of Gabriel India Ltd., [1993] 203 ITR 108 (Bom.). She has also submitted that Ld. Pr. CIT has invoked Explanation-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration have been received by assessee through banking channel. The transaction was conducted through the Demat account. The A.O. after making a deep investigation into the issue of long term capital gains also noted in the assessment order that written submissions of the assessee along with copies of Demat account, source of investment in shares, bank account, copies of share certificates, copy of account of Mathiyan Construction are placed on record. It would, therefore, prove that A.O. examined the issue of long term capital gains with reference to sale of shares at assessment stage in the light of evidence and material on record. Thus the reasons for which the case was selected for scrutiny have been satisfied by the A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed have been mentioned in the return of income itself. Thus, there was no reason to believe that the A.O. did not examine this issue at the assessment stage. Further, the case was selected for scrutiny because the suspicious long term capital gains earned by assessee. This information must be based on information received from Investigation Wing. Therefore, Ld. D.R. was not justified in contending that report of Investigation Wing have not been considered by the A.O. Since it was the sole reason for completing the scrutiny assessment, therefore, it could not be believed that A.O. would not have gone through the material available before him on record. May be the A.O. has not discussed the details in the assessment orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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