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TMI Blog2022 (8) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case, but the AO has failed to apply provisions of section 50C to determine correct consideration received for transfer of property. PCIT, after verifying necessary evidences in light of various facts bought on record by the Assessing Officer has opined that the assessment order passed by the AO is erroneous, insofar as it is prejudicial to the interests of revenue on the issue of computation of long term capital gain from transfer of property, because the AO has failed to apply provisions of section 50C of the Act, while completing assessment. In our considered view, the AO has failed to apply his mind in light of facts of the case to relevant provisions of section 50C of the Act, while completing assessment. Hen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c problem faced by the public on account of Covid-19 pandemic. 3. The learned DR, on the other hand, fairly agreed that delay may be condoned in the interest of justice. 4. Having heard both sides and considered reasons given by the learned AR, we find that the Hon ble Supreme Court in suo motu Writ Petition No.3 of 2020, has extended limitation applicable to all proceedings in respect of courts and tribunals across the country on account of spread of Covid-19 infections w.e.f. 15.03.2020, till further orders and said general exemption has been extended from time to time. We further noted that delay noticed by the Registry pertains to the period of general exemption provided by the Hon'ble Supreme Court extending limitation peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng term capital gain at Rs.1,55,52,949/- . The case has been subsequently taken up for revision proceedings and accordingly, show-cause notice u/s.263 dated 24.02.2021 was issued on the assessee and called upon the assessee to explain as to why assessment order passed by the Assessing Officer shall not be revised for the reasons stated in said show-cause notice. In the said show-cause notice, the learned PCIT was of the opinion that the assessment order passed by the Assessing Officer is erroneous, insofar as it is prejudicial to the interests of revenue, because although, there is difference in guideline value of property as on date of registration and consideration stated to be received for transfer of property, but the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g fact that capital gain derived from transfer of property cannot be assessed for the impugned assessment year and thus, difference consideration received as per provisions of section 50C of the Act cannot be subject matter of revision proceedings for the impugned assessment year. 8. The learned DR, on the other hand, supporting order the learned PCIT submitted that facts brought on record in the order of the PCIT, clearly proves that the Assessing Officer has failed to apply his mind in light of provisions of section 50C of the Act, which rendered the assessment order to be erroneous, insofar as it is prejudicial to the interests of revenue and thus, the PCIT has rightly set aside assessment order by exercising his powers conferred u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the Assessing Officer and order of the PCIT passed u/s.263 of the Act, we need to understand whether the PCIT is right in exercising his powers u/s.263 of the Act or not. Admittedly, the Assessing Officer has caused necessary inquiries with regard to computation of long term capital gain derived transfer of property and has computed capital gain by taking into account cost of acquisition claimed by the assessee without disturbing consideration received from transfer of property, even though, there is difference in guideline value of property. From order of the Assessing Officer, what we could notice is that although, provisions of section 50C could have been applied in the given facts and circumstances of the case, but the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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