| |
| The Tax Publishers2020 TaxPub(DT) 2098 (Ahd-Trib) INCOME TAX ACT, 1961
Section 263
Where sale receipts were netted of with purchase costs and net sale consideration was wrongly shown instead of reflecting gross sale consideration and corresponding purchase cost separately, accounting method adopted by assessee ultimately did not result in any under-reporting of income warranting exercise of power under section 263.
|
Revision under section 263 - Validity - Alleged under reporting of income from sale of land -
Issue was as regards validity of revision under section 263 alleging genuineness of purchase agreements executed with vendors in relinquishment of their rights in land produced before AO to justify the cost associated with acquisition of land. Held: Profit on sale of land can be deduced only after subtraction of corresponding purchase costs. It is not the case of Revisional Commissioner that purchase cost was separately claimed. Assessee claimed that relevant facts towards cost associated with the acquisition were placed before AO in course of assessment. It was reasonable to infer that AO applied his mind to such aspect. The confusion resulted from improper accounting method whereby the sale receipts were netted of with purchase costs and net sale consideration was wrongly shown instead of reflecting gross sale consideration and corresponding purchase cost separately. It ultimately did not result in any under-reporting of income. Therefore, no manifest prejudice resulted to interest of the Revenue for invoking conditions for exercise of power under section 263.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 263
 SUBSCRIBE FOR FULL CONTENT
|