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2014 (7) TMI 635 - AT - Income TaxPower of CIT u/s 263 - revision of order - Determination of capital gain Examination of sources of deposits Proper examination of facts - Held that:- The value of consideration is attributable to each of the property is to be payable to the corresponding vendor - the basis of consideration of each property is not in accordance with the share of their property - there is error in offering capital gain by the assessee in respect of his share in the property - it is apparent that the AO in the course of assessment proceedings, though all the materials available on record, failed to cause enquiry regarding the share of assessee in the sale consideration - He just collected the data and without examining the same passed the assessment order, which makes the assessment order erroneous - Where there is under assessment of tax it causes prejudice to the interests of revenue. The AO has not at all examined as to whether only one view was possible or two or more views were possible and hence, the question of his adopting or choosing one view in preference to the other does not arise Relying upon Padmasundara Rao v. State of Tamil Nadu [2002 (3) TMI 44 - SUPREME Court] - the AO has been entrusted the role of an investigator, prosecutor as well as adjudicator under the scheme of the Income-tax Act - the orders passed on an incorrect assumption of facts or incorrect application of law or without applying the principles of natural justice or without application of mind or without making requisite inquiries will satisfy the requirement of the order being erroneous and prejudicial to the interest of the revenue within the meaning of Section 263. The CIT having gone through the assessment record, found that the AO has not made proper enquiry and passed the order in a very cryptic manner by accepting the admitted income though the assessment was reopened to bring to tax capital gains without conducting further enquiry where the situation warrants enquiry - The AO having failed to gather necessary information regarding the share of each vendor in the sale consideration so as to bring right amount to tax, the CIT is justified in exercising his power u/s. 263 of the Act - it is incumbent upon the AO to come to an independent conclusion that the share in the sale consideration of each person is offered for taxation - the AO absolutely closed his eyes for the reasons best known to him and accepted the admitted income at the face of the return which necessitated the CIT to exercise his powers u/s. 263 of the Act thus, the order of the CIT is confirmed Decided against Assessee.
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