Vikram Jain Vs PCIT (ITAT Chandigarh)
ITAT Chandigarh held that every error is not required to be corrected under Section 263 of the Income Tax Act. Revisionary proceedings u/s. 263 quashed as plausible view taken by the Assessing Officer.
Facts- Assessee has filed his return of income for assessment year 2012-13 declaring total income of Rs.7,64,058/-. The assessee has claimed exemption of Long Term Capital Gain under Section 10(38) of the Income Tax Act amounting to Rs.24,66,160/- on sale of shares of M/s Twenty First Century India Ltd. The return was accepted under Section 143(1). Thereafter, the assessment of the assessee was reopened on the ground that originally assessee has purchased 200 shares of M/s Sarathi Dealers Pvt. Ltd. Notably, AO has issued notice under Section 143(2) as well as under Section 142 and thereafter passed the assessment order.
Thereafter, CIT harboured a belief that AO has not investigated the issue properly and therefore, his order is erroneous and has caused a prejudice to the interests of revenue, hence, he issued a Show Cause Notice u/s. 263 of the Income Tax Act inviting the explanation of the assessee as to why assessment order be not set aside for passing a fresh order. PCIT didn’t accept the submission of the assessee and set aside the assessment order. Being aggrieved, the present appeal is filed.
