Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 1267 - ITAT PATNARevision u/s 263 - admissibility of deduction under section 54F of the Act has been claimed for purchase of four residential house properties - whether the Assessing Officer has conducted sufficient enquiry to examine the correctness of claim of deduction under section 54F? - HELD THAT:- In the light of the provisions of section 263 of the Act and a settled position of law, powers u/s 263 of the Act can be exercised by the Pr. Commissioner/Commissioner on satisfaction of twin conditions, i.e., the assessment order should be erroneous and also prejudicial to the interest of the Revenue. By 'erroneous' is meant contrary to law. Thus, this power cannot be exercised unless the Commissioner is able to establish that the order of the Assessing Officer is erroneous and prejudicial to the interest of the Revenue. Thus, where there are two possible views and the Assessing Officer has taken one of the possible views, no action to exercise powers of revision can arise, nor can revisional power be exercised for directing a fuller enquiry to find out if the view taken is erroneous. This power of revision can be exercised only where no enquiry, as required under the law, is done. It is not open to enquire in case of inadequate inquiry. We find that the Hon'ble Delhi High Court in the case of CIT vs. Anil Kumar [2010 (2) TMI 75 - DELHI HIGH COURT] held that where it was discernible from record that the A.O has applied his mind to the issue in question, the ld. CIT cannot invoke section 263 of the Act merely because he has different opinion. On going through the show-cause notice, we find that the ld. PCIT has alleged that with regard to the claim of deduction under section 54F Assessing Officer failed to examine into the matter and passed the assessment order without proper verification of the facts. This observation that the Assessing Officer failed to examine the matter, in our view is devoid of any merit. Ld. PCIT should have appreciated that on multiple occasions, the Assessing Officer has issued notice to the assessee for furnishing the details and on each occasions replies have been filed by the assessee. Complete details of the documents of purchase of flats have been given. It is an undisputed fact that proper and detailed enquiry has been conducted by the Assessing Officer and when a reasonable enquiry has been conducted by the Assessing Officer (which even ld. PCIT has observed in the impugned order) and a permissible view has been taken by the ld. Assessing Officer, then there remains no scope for the ld. PCIT to invoke the jurisdiction under section 263 of the Act. It is also well settled that a permissible view taken by the ld. Assessing Officer may not be beneficial to revenue. Thus we are of the view that since the issue raised in the show-cause notice has already been examined by the ld. Assessing Officer in detail by conducting adequate enquiry calling for material evidence and other documents supporting the claim of deduction under section 54F of the Act, proper application of mind and taken a plausible view in light of the settled judicial precedence as referred by the ld. counsel for the assessee, there remains no scope for the ld. PCIT to invoke the jurisdiction under section 263 of the Act. We, therefore, quash the impugned proceedings carried out under section 263 of the Act and hold that assessment order under section 143(3) of the Act dated 13.12.2018 is neither erroneous nor prejudicial to the revenue and thus deserves to be restored. Thus the grounds of appeal filed by the assessee are allowed.
|