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TMI Blog2023 (6) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... otice is not a concomitant of the proceedings u/s. 263. - Both these attributes of putting the assessee to notice as well as extending due opportunity of hearing, are met in the instant case - Revision proceedings sustained. Addition u/s 56 - Purchase of property below the stamp value - the applicability of sec. 56(2)(vii)(b)(ii) of the Act - HELD THAT:-The only enquiry made in assessment with regard to the purchase of land was with reference to the source of investment, i.e., as disclosed, and which was explained by the assessee as by way of withdrawal from his capital in his proprietary firm. There is no whisper of valuation thereof and, accordingly, of it being a case of under-valuation, i.e., with reference to the FMV, to which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Act, 1961 ( the Act hereinafter) dated 03.3.2021 by the Principal Commissioner of Income Tax-1, Kochi ( Pr. CIT ) in respect of his assessment under section 143(3) of the Act for AY 2016-17 vide order dated 07.12.2018. 2. The brief facts of the case are that the assessee filed his return of income for the relevant year on 30.6.2016, which was selected for complete scrutiny in view of large exempt income. The assessment was completed assessing the total income at Rs. 129.86 lakhs. The learned Pr. CIT, on an examination of record, found that no enquiry in a matter, which prima facie warranted enquiry, was made. The assessee, it was observed by him, had purchased land admeasuring 18.54 ares for Rs. 139.18 lakhs during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch consideration: Provided that where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause: Provided further that the said proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property; The assessment was accordingly set aside by him for de novo consideration, and making an assessment in accordance with law per a speaking order. 3. We have considered the rival cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. In fact, section 263 has been understood not to require any specific show-cause notice to be served on the assessee. Rather, what is required under the provision is an opportunity of hearing to the assessee. The two requirements are different: the first would comprehend a prior notice detailing the specific grounds on which revision of the assessment order is tentatively being proposed. Such a notice is not required. There is nothing in the section to raise the notice to the status of a mandatory show-cause notice affecting the initiation of the exercise in the absence thereof or to require the Commissioner to confine himself to the terms of the notice and foreclosing consideration of any other issue or question of fact. This is not the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of adjudiction erroneous and prejudicial to the interests of Revenue, liable for revision u/s. 263 of the Act. Case law in the matter is legion, and toward which the ld. Pr. CIT cites two, i.e., Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83 (SC) and Raja Co . v. CIT [2011] 335 ITR 381 (Ker). 5. It is then said that purchases do not amount to receipt , and that the matter ought to have been referred by the ld. Pr. CIT to the Valuation Officer (DVO). We are unable to appreciate the import of the said objection. The revisionary autnority has not adjudicated on merits of the matter, but only set aside the assessment, directing the AO to examine it afresh, and decide in accordance with law. All contentions are open for b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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