Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 1461 - ITAT DELHIRevision u/s 263 by Pr. CIT - non consideration of taxability of sale proceeds under the provisions of Income Tax Act - HELD THAT:- Assessment order passed by the AO shall be deemed to be erroneous in so far as it is prejudicial to the interest of the Revenue, if the assessment order is passed without making enquiries or verification which should have been made by the AO and that orders have been passed allowing any relief without enquiry into the claim. The above facts clearly show that though the AO asked for the explanation of the assessee but the AO never made any enquiry or verification of such a claim and allowed the relief to the assessee without passing any order thereon and without enquiry into the claim of the assessee. Therefore, Explanation 2 to section 263 is clearly attracted in the case of the assessee. Assessee submitted that since AO has taken one of the possible view, therefore, Pr. CIT has no jurisdiction to take a different view. AO has not taken any view on the matter in issue about taxability of sale proceeds under the provisions of Income Tax Act, therefore, there is no question of taking the AO one of the possible view into the matter. Therefore, the decisions relied for assessee would not support the claim of the assessee. During the course of arguments, for assessee admitted that AO after making enquiry into the matter in issue i.e. issue of taxability of sale proceeds on the above referred sale deeds has rejected the claim of the assessee and made the addition against the assessee which is subject matter in appeal before CIT(A). This fact would strengthen the findings of the Ld. Pr. CIT that AO did not examine the issue as per law. Therefore, CIT correctly considered the assessment order to be erroneous in so far as prejudicial to the interest of the Revenue. No infirmity in the impugned order. - Decided against assessee.
|