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TMI Blog2023 (1) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... d how it is prejudicial to the Interest of Revenue whereas the Ld. PCIT in his conclusion, accepts the submission of the assessee, cancellation of Sale Deed, etc., but require further examination and verification. This cannot be a ground to invoke Revision proceedings u/s. 263 of the Act. As relying on Malabar Industrial Co. Ltd [ 2000 (2) TMI 10 - SUPREME COURT ] reassessment order passed by the AO is neither erroneous nor pre judicial to the interest of Revenue for invoking Section 56(2)(vii)(b) for the reason that the sale deed was cancelled vide Cancellation Deed dated 26.02.2013. Therefore the invocation of Revision proceedings by the PCIT is unjustifiable and the same is hereby quashed. Appeal filed by the Assessee is hereby allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 81,00,000/- and assessment was reopened. In response to the 148 notice, the assessee e-filed its Return of Income on 07.06.2018 declaring sale consideration total income of Rs. 56,00,004/-. The assessee was issued with various notices u/s. 142(1) of the Act. The assessee replied that he is the co-owner of the immovable property purchased along with Shri Asit Bharatbhai Shah who has paid the entire sale consideration, which has been reflected in the registered sale deed. Further the bank statement of Shri Asit Bharatbhai Shah was also produced. 2.2. After going through the same, the assessing officer accepted the returned income and completed the reassessment vide order dated 21.12.2018. Subsequently, the Ld. PCIT issued a show cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the powers vested in me u/s. 263 of the Act, I hereby seaside the order passed u/s. 143(3) r.w.s 147 of the Act on 21.12.2018 and direct the Assessing Officer to pass a fresh assessment order after carrying out necessary examination to verify the contentions of the assessee in the light of relevant evidences and draw appropriate inferences in accordance with correct legal provisions. 2.4. The ld. Counsel Mr. Gaurang Sanghavi appearing for the assessee submitted that the Ld. PCIT has clearly mentions in his revision order, that the submissions of the assesse may be acceptable subject to detailed examination and cross verification of relevant documents, if his contentions are found duly substantiated. Therefore the same may be examin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Deed dated 26.02.2013. The Assessing Officer after considering the above transaction and submissions of the assessee, accepted the Returned Income filed by the assessee and passed the reassessment order on 21.12.2018. The Ld. PCIT in his 263 order has concluded that the submission of the assessee may be acceptable and requires to be examined and verified by the Assessing Officer. Thus he set aside the assessment order. The question to be decided now is whether the reassessment order passed by the A.O. is an erroneous order and prejudicial to the interest of Revenue or not? In our considered view, the order is not an erroneous order, since the Sale Deed itself got cancelled vide Cancellation Deed dated 26.02.2013 and the entire sale co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... error committed by the Assessing Officer, it is only when an order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous. In the same category fall orders passed without applying the principles of natural justice or without application of mind. The phrase prejudicial to the interests of the Revenue is not an expression of art and is not defined in the Act. Understood in its ordinary meaning it is of wide import and is not confined to loss of tax. The scheme of the Act is to levy and collect tax in accordance with the provisions of the Act and this task is entrusted to the Revenue. If due to an erroneous order of the In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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