The Tax Publishers2020 TaxPub(DT) 4813 (Chen-Trib)

INCOME TAX ACT, 1961Q

Section 263

Where in revision order passed under section 263, the CIT had not given any findings as to what was required to be verified by AO and in what way the assessment order was prejudicial to the interest of Revenue, such revision order was liable to be quashed.

Revision under section 263 - Erroneous and prejudicial order - Validity - No specific findings given by CIT as to what was erroneous in assessment order and what was required to be verified by AO

CIT invoked provision of section 263 on the ground that assessment order passed under section 143(3) was erroneous and prejudicial to the interest of Revenue. Accordingly, he directed the AO to complete the assessment after carrying out verification into computation of capital gains and exemption claimed under section 54. Assessee submitted that issue sought to be reconsidered as per CIT, was actually considered by the AO while passing the assessment order under section 143(3) and therefore, the revision order passed by the CIT was without any jurisdiction. Held: On perusal of the revision order, it was found that the CIT had not given any specific findings as to what was erroneous in the assessment order and what was required to be verified by the AO. Further, on perusal of the assessment order, it was found that after examining the working of the capital gain/loss, the AO observed that the assessee wrongly computed the indexed cost of improvement with respect to the property and accordingly, after revision of the computation, the long term capital loss was reduced to NIL. Further, in the revision order, the CIT had not disputed the computation of indexed cost of improvement as well as investment in bond and claiming exemption under section 54 or given any findings as to what was required to be verified by the AO and in what way the assessment order was prejudicial to the interest of Revenue. Accordingly, the revision order passed under section 263 was quashed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



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