Case Law Details
Pooja Mittal Vs PCIT (ITAT Delhi)
The case of Pooja Mittal vs. Principal Commissioner of Income Tax (PCIT), heard by the Income Tax Appellate Tribunal (ITAT) in Delhi, revolves around the revisional jurisdiction exercised under Section 263 of the Income Tax Act, 1961. The key issues addressed include the alleged inadequacy of the Assessing Officer’s (AO) enquiry into Long Term Capital Gains (LTCG) and other financial transactions during the assessment year 2014-15.
Pooja Mittal, the appellant, filed her income tax return for the assessment year 2014-15 declaring an income of Rs. 5,56,730/-. The AO accepted this return under Section 143(3) of the Act. However, the Principal Commissioner of Income Tax (Pr.CIT), Delhi-13, later found the assessment order erroneous and prejudicial to the revenue’s interest. This prompted a show-cause notice under Section 263, questioning the AO’s scrutiny, particularly regarding LTCG from the sale of shares.
Pr.CIT’s Concerns
The Pr.CIT issued a show-cause notice dated December 19, 2017, alleging the AO’s failure to adequately verify suspicious transactions related to LTCG on shares, rendering the assessment order erroneous. The notice questioned the AO’s scrutiny process, particularly the non-investigation of transactions classified as penny stocks, significant price variations, and the overall credibility of the documents provided.
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