9911796707
TMI Blog2021 (9) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO is erroneous and prejudicial to the interest of the Revenue, apparently the record of the assessment proceedings was not examined by the Principal CIT in its entirety and objectivity. The allocation was made on the basis of the rates adopted for stamp duty purposes and if on the said basis the allocation of the composite sale consideration has been made, such a fact cannot be ignored and cannot be said to be an erroneous judgment of the Assessing Officer. It is one of the basis on which such valuation can be accepted. It is not the case that the total value as per stamp duty purposes as per section 50C was more than what was adopted for the different capital assets being sold. The assessment order appears to have been made after d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rief facts of the case are that the assessee submitted return of income on 30.9.2015 declaring income of ₹ 18,93,650 and the original assessment was completed u/s. 143(3) of the Act on 29.12.2017 at total income of ₹ 37,92,518/-. Subsequently a rectification order was passed u/s. 154 on 26.4.2018 rectifying the income to ₹ 35,87,112/-. 3. The assessee during the year had sold certain industrial land, factory building and agriculture land. On sale of land being long term capital gain was shown, and on factory building and plant and machinery being depreciable asset the computation of gain on transfer of such asset was made as per section 50 of the Income Tax Act. On sale of agriculture land it was claimed that the same was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llocation as under: a. Industrial Land 8906.32 sq.mts. X 1992 per sq. mts. 1,77,41,389/- b. Agriculture land [2.65 X1936 sq.yards X9] (46173.60 sq. fts. X 380 sq. fts) 1,75,45,968/- * Other assets : * RCC Construction 1% Depreciation each year 2280X 600 * Stone Patti 1 % Depreciation each year * Tinsheet 20718 fts. X .0929 + 1924.70 X 1500 * * Boundary Wall 333 Running mts. X 300 * Less Depreciation 13,68,000/- 8,36,800/- 28,87,053/- 99,900/- 3,79,100/- 48,12,643/- Total Fair Market Value 4,01,00,000/- 6. The assessee also submitted details of such rates adopted for different assets which were placed in the paper book at pages 22 to 24, giving the land rates of agriculture, industrial land, stone patti, tin sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is permissible to be exercised only when the two circumstances specified therein are satisfied; (i) the order passed by the AO is erroneous and (ii) on account of order being erroneous, prejudice has been caused to the interest of revenue. In the instant case, while recording the conclusion that the order passed by the AO is erroneous and prejudicial to the interest of the Revenue, apparently the record of the assessment proceedings was not examined by the Principal CIT in its entirety and objectivity. The allocation was made on the basis of the rates adopted for stamp duty purposes and if on the said basis the allocation of the composite sale consideration has been made, such a fact cannot be ignored and cannot be said to be an erroneo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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