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TMI Blog2024 (10) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the said report. The assessment order does not indicate any enquiries in this regard. CIT has rightly held that the Assessment Order was passed without making the necessary inquiries and verification. Thus, in terms of clause (a) of Explanation 2 to Section 263 of the Act, the assessment order is deemed to be erroneous in so far as it is prejudicial to the interests of the revenue.The appeal is, accordingly, dismissed. - HON'BLE MR. JUSTICE VIBHU BAKHRU AND HON'BLE MS. JUSTICE SWARANA KANTA SHARMA For the Appellant Through: Mr. Rajeev Ahuja, Advocate. versus For the Respondent Through: Mr. Shlok Chandra, Senior Standing Counsel with Ms. Naincy Jain, Junior Standing Counsel, Ms. Madhavi Shukla, Junior Standing Counsel Mr. Susha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tedly, a sum of ₹5,05,00,000/- was received by the appellant. However, the appellant claims that he did not receive the balance amount of ₹1,45,00,000/-, as the cheques for the said amount were dishonoured. According to the appellant, the transaction of sale and purchase of the immovable property remained inchoate. The appellant claims that notwithstanding that a conveyance deed was executed, the sale of the property in question was not consummated. The appellant did not reflect the sale of his immovable property, during the relevant Assessment Year and did not offer the capital gains to tax. 4. The learned CIT found that the AO did not examine the details regarding the dishonour of cheques. The learned CIT noted that the two ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfied. 10. Section 263 of the Act is set out below: Revision of orders prejudicial to revenue. (1) The Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer or the Transfer Pricing Officer, as the case may be, is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including, (i) an order enhancing or modifying the assessment or cancellin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here any order referred to in this sub-section and passed by the Assessing Officer 92[or the Transfer Pricing Officer, as the case may be,] had been the subject matter of any appeal filed on or before or after the 1st day of June, 1988, the powers of the* Principal Commissioner or Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal. Explanation 2. For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer or the Transfer Pricing Officer, as the case may be, shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der this section is stayed by an order or injunction of any court shall be excluded. [Emphasis added] 11. We find no merit in the appellant s contention. Concededly, the audit report could not have commented upon the dishonour of cheques, as the report was issued prior to the date of the cheques aggregating ₹1,45,00,000/-. The AO had accepted the said report. The assessment order does not indicate any enquiries in this regard. The learned CIT has rightly held that the Assessment Order was passed without making the necessary inquiries and verification. Thus, in terms of clause (a) of Explanation 2 to Section 263 of the Act, the assessment order is deemed to be erroneous in so far as it is prejudicial to the interests of the revenue. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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