INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial order - Lack of inquiry by AO into certain vital aspects concerning eligibility of deduction claimed under section 54B -

CIT held order passed by AO as erroneous and prejudicial to the itnerest of the revenue on the ground of lack of inquiry by AO into certain vital aspects concerning eligibility of deduction claimed under section 54B.Held: It is an admitted fact that on the date of transfer, land in question was neither agricultural land nor was used for agricultural purposes. It had been admittedly declared as 'fallow land' on which no agricultural produce is plausible. As per certificate of Talati as produced by assessee himself, viability of carrying out agricultural activity was quite dismal. Also assessee had not declared any worthwhile agricultural income in the earlier years. Further, no evidence as regards transfer from 'capital gains savings scheme' to capital gain deposit scheme' was filed before AO and AO accepted the claim without looking into those aspects which had direct bearing on maintainability of deduction under section 54B. Accordingly, assessment order was clearly erroneous and prejudicial.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 54B

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