Case Law Details

Case Name : Krishna Shriram Vs Commissioner of Income Tax (ITAT Delhi)
Appeal Number : I.T.A. No. 1649/Del/2011
Date of Judgement/Order : 29/01/2014
Related Assessment Year :
Courts : All ITAT (7317) ITAT Delhi (1713)
 CA Prarthana Jalan
Hon’ble Delhi ITAT while deciding a case involving issue of sec 263 of the Income Tax Act,1961 has held that A.O. is  not only an adjudicator but also an investigator.The observation of the Hon’ble bench is as under :-
It  is  settled  law  that  that  frequency  and  magnitude  of transaction  are  also  important  factor  to  decide   whether  the transaction is business transaction or investment transaction. Now in our  considered  opinion,  the  magnitude  of  share  transaction  in  this case  does call for  any  enquiry on the part  of  the  AO  as to  whether these are investments transactions or business transactions. A.O. is not   only  an  adjudicator  but  also  an  investigator.  We  find  that  AO has  totally  failed  to  make  any  enquiry.   In  these  circumstances,  we find  that  the  invocation  of  section  263  by  the  Ld.  CIT  is  correct  and accordingly  we  hold  that  the  Ld.  CIT  has  rightly  asked  the  AO  to examine this aspect.
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  1. adv. dr.g.balakrishnan says:

    What kind of investigation training AO is bestowed with is the new question of burden? reason an investigator is some prosecutor when so how can he an adjudicator or judge? i wonder what is the jurisprudence?

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