Pramod Ramavatar Poddar Vs PCIT (ITAT Ahmedabad)
Revision U/s 263 Modified – Disallowance of Share Purchase Cost U/s 115BBE Linked to Bogus LTCG Issue Restored to CIT(A) – ITAT Ahmedabad
Pr.CIT invoked revisionary powers u/s 263 holding that the AO erred in allowing deduction of purchase cost while taxing alleged bogus LTCG u/s 68, stating that deduction was barred u/s 115BBE(2). Accordingly, the assessment order was set aside to disallow purchase cost of ₹20.84 lakh.
Before ITAT, it was pointed out that the quantum issue relating to genuineness of LTCG had already been restored by the Tribunal to CIT(A) for fresh adjudication. Since the allowability of purchase cost and applicability of s.115BBE were directly linked to the outcome of the LTCG dispute, ITAT held that both issues should be decided together to avoid multiplicity of proceedings. The Tribunal modified the revision order directing that the CIT(A) decide both the quantum issue and the related cost-disallowance issue collectively during appellate proceedings. Appeal disposed accordingly.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been preferred by the Assessee against the order of the Learned Pr.Commissioner of Income Tax (Central), Ahmedabad [hereinafter referred to as ‘Pr.CIT’] dated 30/03/2021 passed in exercise of his revision jurisdiction under Section 263 of the Income-Tax Act, 1961 [hereinafter referred to as “the Act” for short] for Assessment Year (AY) 2015-16.
