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TMI Blog2024 (3) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 143(3) of the Act by the ITO, Ward-1, Fatehabad (hereinafter referred as the Ld. AO). 2. The assessee had filed return of income which was picked up for limited scrutiny to examine the issue: 'Whether the investment and income relating to the securities are duly disclosed.' The assessment was completed u/s 143(3) of the Act on the returned income. The ld.PCIT was, however, not satisfied with the assessment order and, on the basis of the assessment record, had show-caused the assessee with the following notice:- "2. The assessment record for the period under consideration was called upon and examined. On such examination, it has been noticed that during the course of assessment proceedings, you have submitted that there is loss of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wiss Broking Ltd. are enclosed herewith." 4. However, the ld. PCIT was not satisfied and observed in para 3 as follows:- "3. I have carefully examined the entire facts of the case from the assessment record and the reply of the assessee. Perusal of assessment record shows that the replies filed during the assessment proceedings were just placed on record and the A.O. has failed to make any enquiries in regard with the transfer of cash deposited by the assessee to two concerns namely M/s Edelweiss Broking Ltd and M/s Sharekhan Ltd during the year under consideration. The A.O. has also failed to examined the cash book for the relevant period to verify the contention of the assessee as submitted during the course of assessment proceedings. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed u/s 263 of the Income-tax Act, 1961 proposing a redoing of the assessment merely because certain material connected with the issues in assessment are not on record and so, in the opinion of the Pr. Commissioner, necessary or proper enquiry/verification has seemingly not been made is untenable on facts and law and unsustainable as such, and must be quashed. 4. That the finding u/s 263 of the Income-tax Act, 1961 of the Pr. Commissioner of Income- tax that Ld. AO has passed the order u/s 143(3) of the Act, on 06-12-18 in a very causal manner without due diligence and without conducting any worthwhile enquiry, as AO has failed to make any enquiries in regard with the transfer of cash deposited by the assessee two concerns namely M/s Edel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the considered view that the grounds before us are composite in nature and, accordingly, are taken up together for discussion. It is pertinent to mention that the additional ground raised by the assessee questioning the legality of the proceedings arising out of the notice and the order of ld. PCIT not bearing DIN was not pressed. 9. It comes up that the notice u/s 143(2) of the Act for limited scrutiny was issued on 29.09.2017 where the primary query under consideration was 'whether the investment and income relating to security transactions are duly disclosed' (copy of this notice is available at pages 25 and 26 of the paper book). Then, at page 27 of the paper book, there is a notice dated 05.01.2018 wherein certain information/doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m transaction of share is been carried out is enclosed herewith. There is a loss of Rs. 93319.00 in the trading of shares. Due to loss in trading of share, loss has not been claimed in the return of income. 4. That, copy of account issued by broker regarding sale/purchase of share is enclosed herewith. 5. That, during the year under consideration closing balance of Reliance Communication share were 1200 and rate was @50 per share, value of closing stock come to Rs. 60000.00." 11. However, during the assessment proceedings, the assessee, by a letter made available at page 77 of the paper book also provided the following replies:- "1. Investment in shares was made out of retail sale of goods amounting to Rs. 24,96,580/-. This sale has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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