The Tax Publishers2020 TaxPub(DT) 4339 (Bang-Trib) : (2021) 187 ITD 0342

INCOME TAX ACT, 1961

Section 263

Assessee could not substantiate as to how AO made enquiries with regard to the deduction under section 54F, before concluding the assessment, except by pointing out that all facts were laid before AO and it could be presumed that he had taken note of this aspect while concluding assessment. The fact that AO himself initiated proceedings under section 154 to rectify error apparent on record on the aspect of computation of long-term capital gain went to show that he had while completing assessment not made proper enquiries and since there was a failure on part of AO to make necessary enquiry, Pr. CIT was justified in invoking jurisdiction under section 263.

Revision under section 263 - Erroneous and prejudicial order - Lack of enquiry on AO's part -

Pr. CIT held order passed by AO as erroneous and prejudicial to the interest of revenue on the ground of AO having made no enquiry as regards assessee's claim of deduction under section 54F. Assessee took plea of note attached to the order of assessment wherein AO there was a reference to claim of assessee having been examined under section 54 and the factum of having verified all sale deeds and purchase deeds. Held: Office note was not clear about what enquiries AO made before concluding assessment. Assessee could not substantiate as to how AO made enquiries with regard to the deduction under section 54F, before concluding the assessment, except by pointing out that all facts were laid before AO and it could be presumed that he had taken note of this aspect while concluding assessment. The fact that AO himself initiated proceedings under section 154 to rectify error apparent on record on the aspect of computation of long-term capital gain went to show that he had while completing assessment not made proper enquiries and since there was a failure on part of AO to make necessary enquiry, Pr. CIT was justified in invoking jurisdiction under section 263.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



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