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2014 (12) TMI 669 - ITAT CHANDIGARHValidity of revision order passed u/s 263 - CIT noted that assessee sold land and against that deduction u/s 54F claimed – Held that:- CIT observed that the assessee had failed to furnish any documentary evidence regarding construction on the said plot, neither any approval for construction of plot from the Municipal Committee was available on record nor any map was available on record - show cause notice issued u/s 263 reflects that the enquiry was made in respect of the construction on the new plot of land purchased by the assessee – CIT while passing the order u/s 263 has directed the AO to make fresh assessment on the issue of deduction u/s 54F and the investment in land – revenue has failed to produce any other show cause notice issued by the CIT vis-ŕ-vis the investment made in the purchase of land - as the CIT has failed to issue any show cause notice to the assessee on the issue of purchase of land which was declared by the assessee at ₹ 11,62,360/-, however before the bank, value of which was shown at ₹ 34,00,000/- there was no merit in the directions of the CIT in respect of the investment in purchase of land in the absence of any show cause notice being issued to the assessee u/s 263 of the Act and the same are reversed. Enquiries made by the AO vis-ŕ-vis the cost of construction of the plot of land - Claim of the assessee u/s 54 – Held that:- The assessment was made after the case was selected for scrutiny through CASS on the basis of AIR information – AO has given a finding that the assessee had filed the reply and has also furnished the information as called for during the assessment proceedings - merely because the copy of sanctioned plans was not available on record, does not imply that the plans were not sanctioned - assessee in all fairness admitted that the plans were produced before the AO – following the decision in Malabar Industries Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME Court] – the AO had already taken a view on the issue and there was no merit in the order of CIT in taking a different view on the issue –thus, there was no merit in exercise of power u/s 263 by the CIT and the same is cancelled – Decided in favour of assessee.
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