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2022 (12) TMI 1118 - ITAT AHMEDABADRevision u/s 263 - Entitlement to deduction u/s. 54F - as per CIT had not applied his mind with regard to the ownership of two residential houses by the assessee as on 31.03.2015, which are reflected in the balance sheet, but simply granted the deduction u/s. 54F on purchase of a new property which is against the provisions of Section 54F - AO has not discussed any details either in the assessment order or in the notices issued to the assessee whether the assessee fulfills the conditions as prescribed u/s. 54F - HELD THAT:- As seen that the assessment order passed by the Assessing Officer is without any details and no information about the claim of deduction u/s. 54F of the Act more particularly when the claim is to the extent of Rs. 3,96,79,796/- by the assessee. Though the A.O. asked the assessee to justify the deduction claimed in computation of capital gain along with supporting evidences through notice issued u/s. 143(2) of the Act and the assessee made simple rely which is extracted in Para 6.1 above. The same does not details about the already existing property details, other information. Thus in our considered opinion that the Assessing Officer has not conducted necessary inquiry before allowing deduction u/s. 54F, but simply allowed the claim made by the assessee. Section 54F of the Act is not applicable, if the assessee at time of transfer of original assets, owns more than one residential house, other than the new assets acquired by him. Thus without applications of the provisions of law, the assessing officer has granted the relief to the assessee which otherwise the assessee is not eligible for the claim of deduction u/s. 54F of the Act. PCIT has invoked the provisions of Section 263 thereby set aside the erroneous assessment order passed by the Assessing Officer and directed the A.O. to pass a fresh assessment order after allowing adequate opportunities to the assessee in accordance with law following the prescribed procedure and duly examining the issue of allowability of deduction u/s. 54F - Decided against assessee.
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