2023 (7) TMI 1455 - SCH - Income Tax

Revision u/s 263 by CIT - determination of correct head of income - business income or capital gain - assessee had purchased the property in question with an intention to build Tech Park but due to recession the building was not constructed and as the firm had no funds assessee sold the land. As decided by HC 2022 (10) TMI 1120 - KARNATAKA HIGH COURT merely because two plausible views are available and the AO has taken one view the jurisdiction u/s 263 cannot be exercised. Thus we are of the considered view that invoking Section 263 in the facts and circumstances of the case was erroneous. First question as to whether the Tribunal was right in holding that there was no infirmity in the order of revision requires interference and the said finding needs to be set-aside. On second question whether the Tribunal was right in holding that no enquiry was made by the AO during the original assessment proceedings - In view of the admitted facts that the land was purchased and sold without any development no elaborate enquiry was required and the Assessing Officer has noted the facts required for the case and passed the Assessing orders. HELD THAT - Upon hearing the counsel the Court made the following Delay condoned. Issue notice returnable on 05.09.2023.

Summary

The Supreme Court of India, with Hon'ble Mr. Justice Abhay S. Oka and Hon'ble Mr. Justice Sanjay Karol, condoned delay and issued notice returnable on 05.09.2023. The Respondent did not appear. Petitioner represented by Mr. N Venkatraman, A.S.G., Mr. Raj Bahadur Yadav, AOR, Mr. V C Bharathi, Adv., Mr. Ruchi Gaur Narula, Adv., Mr. Ishaan Sharma, Adv., Mr. Rakesh Sharma, Adv.