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TMI Blog2022 (11) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... It was also shown that relevant sale transactions have been duly disclosed in the returns of income filed by the partnership firm, which has also been accepted by the assessing officer of the partnership firm. It is well settled proposition of law that the tax can be levied in right hands only as held by Hon'ble Supreme Court in the case of ITO vs. Ch Atchiah [ 1995 (12) TMI 1 - SUPREME COURT] as held tax the right person and the right person alone. Here right person means the person who is liable to be taxed according to law, which respect to a particular income. Since the two properties referred by Ld. PCIT belonged to the partnership firm, the profit on sale of those properties cannot be assessed in the hands of the assessee. When there is no revenue leakage in the hands of the assessee, the impugned assessment order cannot be termed as erroneous and prejudicial to the interests of revenue in respect of this issue. Unsecured loan - We notice that the impugned assessment order has been passed u/s. 143(3) r.w.s 153A of the Act and the instant assessment year falls under the category of unabated assessment. It has been held in the case of Kabul Chawla[ 2015 (9) TMI 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion orders dated 29-03-2022 passed by Ld. PCIT (Central), Jaipur and they relate to the assessment years 2012-13 and 2013-14. The assessee is challenging the validity of revision orders passed by Ld. PCIT for both the years. Since both the appeals were heard together, they are being disposed of by this common order, for the sake of convenience. 2. The facts relating to the case are stated in brief. The assessee was subjected to search on 14-03-2018. Consequent to the search operations, the AO completed the assessments of both the years under consideration u/s. 143(3) r.w.s 153A of the Act on 20.12.2019. (In the assessment order, the AO has mentioned the section as 143(3) r.w.s 153B(1)(a) of the Act). The Ld. PCIT, upon examination of assessment records both the years, took the view that the assessing officer has not conducted proper enquiries/verification while passing the assessment orders. Accordingly, he initiated revision proceedings u/s. 263 of the Act. 3. We shall first take up the revision order passed for AY 2012-13. The Ld. PCIT issued show cause notice u/s. 263 of the Act on the following issues:- (a) Sale of property located at K No. 3737, 3644 Ranisagar, Tehs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eport. 6. After considering the reply and the remand report of the AO, the Ld. PCIT made following confusing observations:- ....I have examined the facts as obtaining and the assessing officers report. I find that in these revision proceedings, these facts have not been examined. I also note that the taxpayer's averments cannot also be denied outright. The taxpayer's averments may also be correct. However, all these require examination by the assessing officer. Accordingly, in exercise of powers conferred upon me as per provisions of section 263 of the IT Act 1961, I direct the assessing officer to examine the issue as detailed in the show cause notice, and pass assessment order accordingly.... The assessee is aggrieved by the order so passed by Ld. PCIT. 7. We heard rival contentions and perused the record. It is settled position of law that the revision proceedings u/s. 263 of the Act can be initiated by the Ld. PCIT if he is of the view that the assessment order is erroneous in so far as it is prejudicial to the interests of revenue. It is also settled proposition of law that both the conditions should be satisfied in order to initiate revision proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preted by the Hon'ble Delhi High Court makes it clear that the Ld. PCIT, before holding an order to be erroneous, should have conducted necessary enquiries or verification in order to show that the finding given by the assessing officer is erroneous and further the Ld. PCIT should have shown that the view taken by the AO is unsustainable in law. 8. In the instant case, the Ld. PCIT has initiated the revision proceedings on the impression that the assessee has not disclosed the sale transactions of two properties. It was shown by the assessee that the properties belonged to a partnership firm, in which he is a partner. It was also shown that relevant sale transactions have been duly disclosed in the returns of income filed by the partnership firm, which has also been accepted by the assessing officer of the partnership firm. It is well settled proposition of law that the tax can be levied in right hands only as held by Hon'ble Supreme Court in the case of ITO vs. Ch Atchiah (1996 AIR 883) : 218 ITR 239)(SC), wherein it was held by the Hon'ble Apex Court that the AO can, and he must, tax the right person and the right person alone. Here right person means the person wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on order passed by Ld. PCIT could not be sustained. Accordingly, we quash the impugned revision order passed by Ld. PCIT for AY 2012-13. 11. We shall now take up the appeal filed for AY 2013-14. The only issue on which the Ld. PCIT has initiated revision proceeding relate to the claim for deduction of cost of improvement made in the land sold by the assessee by way of construction of compound wall. The assessee had sold a land and while computing capital gain, he claimed cost of improvement of land, which consisted of construction cost of compound wall amounting to Rs. 5,70,500/-. It was the case of Ld. PCIT that the AO has not examined this claim. 12. Before Ld. PCIT, the assessee contended that the claim of compound wall expenses was duly examined by the AO by considering various details furnished by the assessee. Hence Ld. PCIT called for a remand report from the AO, who also confirmed that the relevant details were furnished during the course of assessment. After considering the reply and the remand report of the AO, the Ld. PCIT made following confusing observations in this year also:- ....I have examined the facts as obtaining and the assessing officers report. I f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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