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2014 (6) TMI 369 - AT - Income TaxRevision u/s 263 of the Act – Claim of exemption u/s 54F of the Act – Capital gain towards investment in purchase of residential house – Held that:- Relinquishing or extinguishing one’s right over a capital asset also amounts to transfer - assessee has not only entered into an agreement of sale for purchase of plot but has also paid an amount of Rs. 25 lakhs to the vendor - the assessee acquired right, though may be to a limited extent, over the property - when the assessee, as per terms of the MoU, gave up his claim over the property against consideration received, certainly it can be interpreted that the assessee has relinquished or extinguished his right over the property. The vendor would have agreed to settle the dispute by paying a huge amount of Rs. 1.5 crores for a pittance unless the assessee had acquired some right over the property. Considered in the aforesaid perspective, a view can be taken that there is a ‘transfer’ of capital asset within the purview of section 2(47) attracting capital gain and which view has been taken by the AO - when the AO has enquired into the matter, applied his mind to the materials on record and the view taken by him on the assessability of the receipt is one of the possible views, the assessment order passed by him cannot be considered to be erroneous and prejudicial to the interests of revenue - Only because the CIT considers the receipts as windfall gain and in his opinion such receipt has to be assessed as income from other sources, the assessment order cannot be held to be erroneous and prejudicial to the interests of revenue so as to empower the CIT to revise it u/s 263 of the Act - the exercise of power u/s 263 of the Act is not justified – Decided in favour of Assessee.
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