Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1147 - ITAT MUMBAIRevision u/s 263 - Held that:- We are of the firm conviction that from the withholding by the assessee of the actual source of the investment, viz. loan raised by him on 21.08.2008 from his client, i.e M/s Kalpavruksha Plantation Pvt. Ltd., during the course of the assessment proceedings, it can safely be inferred that the same had been so done with a purpose of avoiding verification of certain issues which would had a strong bearing on the income of the assessee. We are of the considered view that the acceptance of the claim of the assessee by the A.O without making any verification, thus clearly renders the order passed by the A.O on the said aspect, as erroneous and prejudicial to the interest of the revenue. We also do not find ourselves to be in agreement with the contention of the assessee had made the payment of the purchase consideration not from the loan raised from his mother Mrs. Suneeta Pawar was discernible from the ‘Agreement', copy of bank statement, ‘balance sheet’ of the assessee on 31.03.2009, which were there before the A.O, therefore, it could safely be gathered that the A.O after perusing the said factual position and being conversant of the fact that the investment did not pertain to the year under consideration, but was relatable to A.Y. 2009-10, had thus after due application of mind accepted the claim of the assessee. We have further perused the judgment of the Hon’ble High Court of Bombay in the case of CIT Vs. Gabrial India Ltd. [1993 (4) TMI 55 - BOMBAY High Court] and are of the considered view that the same being distinguishable on facts would thus not assist the case of the assessee. We are further of the considered view that after the insertion of Explanation 2 to Sec. 263 w.e.f 01.06.2015, which would be applicable to the case of the assessee, the order which in the opinion of the Pr. CIT had been passed by the A.O without making inquiries or verification, thus, on the said count would be rendered as erroneous in so far as it is prejudicial to the interest of the revenue, and as such amenable for revision u/s 263. We thus in light of our aforesaid observations uphold the revision of the order u/s 263 on the aforesaid issue under consideration. Applicability of the provisions of Sec. 50C - Held that:- We have deliberated on the invocation of the revisional powers by the Pr. CIT on the ground that as the agreement was for a consideration of ₹ 5,00,00,000/-, however, the value adopted by the Stamp Valuation authority was ₹ 5,38,45,100/-, therefore, the A.O had not verified the applicability of Sec. 50C in the hands of the seller. We are of the considered view that as the applicability of the provisions of Sec. 50C is not attracted in the hands of the assessee, viz, buyer, therefore, for the purpose of verifying the tax liability of the seller, viz. third party, the case of the assessee could not be revised. We thus set aside the exercise of the revisional jurisdiction by the Pr. CIT on the issue pertaining to verification of the applicability of Sec. 50C in the hands of the seller of the property.
|