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TMI Blog2021 (11) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Assessing Officer qua the issue of transfer of industrial plot. If that aspect was considered by the learned Commissioner as erroneous and prejudicial to the interest of the Revenue; thereafter other aspects on the issue of share transactions would also be examined; but in the absence of any addition on the first point, no other issue can be entertained, even under revisional jurisdiction under Section 263 of the Act. We, therefore, allow this appeal and quash the impugned order passed under Section 263 of the Act. - Decided in favour of assessee. - ITA No. 94/Ahd/2021 - - - Dated:- 12-10-2021 - Rajpal Yadav, Vice President And Amarjit Singh, Member (A) For the Appellant : Ketan Shah and Aman Shah, ARs For the Respondents : Vinod Tanwani, CIT-DR ORDER Per Rajpal Yadav, Vice President The present appeal is directed at the instance of the assessee against the order of the learned Principal Commissioner of Income Tax, Ahmedabad-3, Ahmedabad ( PCIT in short) dated 29.03.2021, passed for Assessment Year 2011-12. The assessee has taken eight grounds of appeal which are argumentative in nature. In brief, her grievances revolve around a single issue namel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offer the capital gain for taxation. 2. Vide letter dated 07.03.2018 emailed to the ITO, Ward-5(3)(2), Ahmedabad, assessment records of M/s. Nami Parixit Metal Industries for A.Y. 2011-12 were called for which have been forwarded by the concerned AO. On scrutiny of the said case records, copy of partner's capital accounts (including assessee's capital a/c.), return of income and the Computation of Income for A.Y. 2011-12 of the assessee are also found placed on record. On verification of the capital a/c. of the assessee in the books of the said firm, it is noticed that ₹ 1,42,50,000/- has been credited in the assessee's partner's capital account on a/c. of transfer of the capital asset i.e. open plot of non-agricultural industrial land at Survey No. 152(1) of Sanand taluka being her share in the said capital asset. On verification of ITR and Computation of Income for the A.Y. 2011-12, it is noticed that the assessee has not computed any gain arising from such transfer and offered the resultant capital gain for taxation. 3. In view of above facts, I have reason to believe that the capital gain of the assets transferred and valued of ₹ 1,42,50,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The relevant part of the discussion reads as under:- 2. On verification of return of income filed by the assessee for A.Y. 2011-12 in response to the notice u/s. 148 of the Act, it is noticed that the Assessee has sold shares amounting to ₹ 86,13,138/- and have declared the cost of acquisition after indexation at ₹ 7,22,791/-. The assessee has thus-worked out Long-term Capital Gain (LTCG) from this transaction at ₹ 78,90,347/-. Further, on verification, it is noticed that the assessee has claimed the deduction u/s. 54/54B/54D/54EC/54F/54G/54GA of the Act of ₹ 73,59,067/- and the balance LTCG amount of ₹ 5,31,280/- has been set off against business loss of ₹ 6,19,329/-. 3. On further verification of re-assessment records, it is noticed that no details and supporting documentary evidences in respect of the above transactions are found on record. It is further noticed that neither the assessee has disclosed the particular section of the I.T. Act under which the exemption/deduction has been claimed out of the LTCG derived nor the Assessing Officer has verified the sale of shares and huge LTCG exemption claimed by the assessee. The Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer to examine and to apply the correct position applicable as per law. There is absolute failure on the part of the Assessing Officer in this regard and it is such failure which calls for revision of the assessment order u/s. 263 of the Act. 6. A perusal of the reasons extracted supra, it would reveal that the learned Assessing Officer sought to reopen the assessment on account of escapement of capital gain arising from sale of an industrial plot. In other words, according to the Assessing Officer, she has transferred an industrial plot to M/s. Nami Parixit Metal Industries and the capital gain arose on account of such transfer has not been taxed. However, no addition on this issue was made by the Assessing Officer. The learned Commissioner did not find any error in the findings of the learned Assessing Officer for not taxing the capital gain arose to the assessee on account of transfer of industrial plot bearing No. 152(1) of Mouje Khoda, Tal. Sanand, Dist. Ahmedabad. He took up altogether a new issue, i.e. Long Term Capital Gain arose to the assessee on account of sale of shares and claiming deduction under Section 54/54B/54D/54EC/54F/54G/54GA etc, as discernabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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