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2023 (2) TMI 1060 - ITAT RAJKOTRevision u/s 263 by CIT - value of cost of acquisition adopted by the assessee while computing capital gain on sale of agricultural land - Unrealistic approach or scientific method valued the property at unrealistic value - As per CIT assessee claimed excess of cost indexation by which needs to be disallowed - HELD THAT:- As it is revealed it is not the case that the AO has not made any enquiry. Indeed, the Pr. CIT initiated proceedings u/s 263 of the Act on the ground that the AO has not made enquiries or verification which should have been made in respect value of land adopted by the registered valuer. It is not the case of the Pr. CIT that the Ld. AO did not apply his mind to the issue on hand or he had omitted to make enquiries altogether. In the instant set of facts, the AO had made enquiries and after consideration of materials placed on record accepted the genuineness of the claim of the assessee. At this juncture, it is also important to note that the learned PCIT in his order passed under section 263 of the Act has made reference to the explanation 2 of section 263 of the Act. It was attempted by the learned PCIT to hold that there were certain necessary enquiries which should have been made by the AO during the assessment proceedings but not conducted by him. In this regard, we make our observation that the learned PCIT has not invoked the explanation 2 of section 263 of the Act in the show cause notice about the same. Therefore, the opportunity with respect to the explanation 2 of section 263 of the Act was not afforded to the assessee. Thus, on this count the learned PCIT erred in taking the recourse of such provisions while deciding the issue against the assessee. Thus we hold that there is no error in the assessment framed by the AO under section 143(3) causing prejudice to the interest of revenue. Thus, the revisional order passed by the learned PCIT is not sustainable and therefore we quash the same. Hence, the ground of appeal of the assessee is allowed.
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