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| The Tax Publishers2020 TaxPub(DT) 1387 (Del-Trib) : (2020) 204 TTJ 0785 INCOME TAX ACT, 1961
Section 263
Pr.CIT did not hold any enquiry into the matter and merely rejected explanation of assessee without arriving at a definite finding that assessment order was erroneous insofar as prejudicial to the interests of Revenue. Accordingly, order passed under section 263 was set aside as invalid.
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Revision under section 263 - Erroneous and prejudicial order - No lack of enquiry as alleged by Pr.CIT -
Pr.CIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground that AO failed to examine the issue regarding tax exemption of consideration received on sale of agricultural land and sale proceeds of agricultural produce.Held: As evident, case of assessee was selected for limited scrutiny exactly on the point in issue, i.e., 'large agricultural income'. AO issued statutory notices to assessee calling for explanation and assessee submitted necessary details and documents and after satisfying with documentary evidences on record, AO accepted contention of assessee i.e. sale proceeds of agricultural land and agricultural produce were exempt from tax. Pr.CIT did not hold any enquiry into the matter and merely rejected explanation of assessee without arriving at a definite finding that assessment order was erroneous insofar as prejudicial to the interests of Revenue. Accordingly, order passed under section 263 was set aside as invalid.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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