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2020 (1) TMI 1537 - AT - Income TaxRevision u/s 263 by CIT - assessee has already offered Long Term Capital Gain to tax under Income Declaration Scheme ( IDS) - CIT proposes that the purchase price of 1,00,000/- is to be added and the commission payment to the tune of ₹3,76,219/- has to be brought to tax, in his order passed u/s 263 of the Act - HELD THAT - Once the income offered and the IDS, 2016 is accepted by the Department, an order passed u/s 143(3) of the Act cannot be revised, as the items of addition in question directed by the ld. Pr. CIT was part of the IDS, 2016 application and not part of the order passed u/s 143(3) of the Act. Even otherwise once a person has availed IDS, 2016 and paid taxes, in our view it is not correct for the Pr. CIT to revise the assessment order u/s 263 of the Act as this would be against the spirit of the scheme. Thus we cancel the same and allow the appeal of the assessee.
Issues: Appeal against order of Pr. Commissioner of Income Tax-10, Kolkata dated 29.01.2019 u/s 263 of the Income Tax Act, 1961 for AY 2014-15.
Analysis: 1. The appeal was filed by the assessee against the order of the Pr. Commissioner of Income Tax-10, Kolkata dated 29.01.2019 under section 263 of the Income Tax Act, 1961 for the assessment year 2014-15. 2. The assessee had already offered Long Term Capital Gain of ?74,24,380/- to tax under the Income Declaration Scheme (IDS) 2016 and paid taxes accordingly. The Pr. CIT proposed adding the purchase price of ?1,00,000/- and bringing the commission payment of ?3,76,219/- to tax. 3. The Income Declaration Scheme (IDS) 2016 application and the items of addition in question were part of the IDS, not the original assessment order passed under section 143(3) of the Act. Therefore, the Tribunal held that once the income offered under IDS is accepted by the Department, the assessment order cannot be revised. 4. Additionally, the Tribunal noted that when a person avails IDS 2016 and pays taxes, it is not appropriate for the Pr. CIT to revise the assessment order under section 263 of the Act. Doing so would go against the spirit of the scheme. Consequently, the Tribunal canceled the revision and allowed the appeal of the assessee. 5. Therefore, the Tribunal allowed the appeal of the assessee against the order of the Pr. Commissioner of Income Tax-10, Kolkata dated 29.01.2019 under section 263 of the Income Tax Act, 1961 for the assessment year 2014-15.
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