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TMI Blog2025 (2) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 54F of the Act and thereafter granting the same is not at all erroneous or prejudicial to the interest of the Revenue. Invoking Section 263 of the Act by the PCIT thus is that of review of the Assessment Order which is beyond the scope of Section 263 - Appeal of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ged excessive deduction u/s.54F could not be disallowed in the year appeal in view of the fact that deposit made under Capital gains Scheme so that it could at the most have to be considered at the end of third year. 3.1 The Id. Pr. CIT has grievously erred in law and or on facts in holding that the provision of Explanation-2 to sec.263 was attracted in the facts of the case. 3.2 That the in the facts and circumstances of the Id. Pr. CIT ought not to have directed AO to make fresh assessment by withdrawing the excessive exemption u/s.54F to the extent of Rs.45,73,740/-. It is, therefore, prayed that the order of revision passed u/s.263 by the respondent should be quashed and direction to make addition should be quashed." 3. The origi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count with Bank of Baroda on 31.03.2018 and since the assessee fulfilled the conditions for claiming deduction under Section 54F of the Act, the assessee's claim was acceptable and deduction under Section 54 of the Act was disallowed by the Assessing Officer. The PCIT observed that the assessee had furnished valuation report dated 10.10.2020 in which Fair Market Value of the plot as on 01.04.2001 was disclosed at Rs.9,59,000/-. However, in the revised return, the assessee claimed cost of acquisition of Rs.6,00,000/-. The said sale deed indicates that there was purchase of new residential property at Rs.39,95,930/-. However, the Assessing Officer has not verified the restriction of the deduction of capital gain under section 54F of the Act t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of exemption allowable was to the extent of Rs.28,27,380/- only. 7. We have heard both the parties and perused all the relevant material available on record. After going through the table which is reproduced by the PCIT relating to the amount of exemption allowable upto calculation, the main fact that the assessee has invested upto Rs.89,10,000/- in the properties which is threshold under Section 54F of the Act and there is no doubt created by the PCIT in the said transfer. Once the Assessing Officer has looked into all the aspects when the assessee is claiming deduction under Section 54 which was rightly disallowed by the Assessing Officer and the deduction claimed under Section 54 which was looked into after checking/verifying ..... X X X X Extracts X X X X X X X X Extracts X X X X
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