2017 (11) TMI 1622 - HC - Income Tax

Revision u/s 263 - Section 54B applicability regarding investment in tubewell - investment made by the assessee in the name of his wife - Held that:- On the first issue of sec.263 in view of the decision of Malabar Industrial company Ltd. (2000 (2) TMI 10 - SUPREME Court) Sec.263 provisions are taken only on the ground of prejudicial and interest loss of the revenue to the Government. Merely change of opinion will not give any right u/s 263 hence, the issue regarding Sec. 263 is required to be answered in favour of the assessee and against the department.

On the ground of investment made by the assessee in the name of his wife, in view of the decision of Delhi High Court in Sunbeam Auto Ltd.[2009 (9) TMI 633 - Delhi High Court], the word used is assessee has to invest it is not specified that it is to be in the name of assessee.

It is true that the contentions which have been raised by the department is that the investment is made by the assessee in his own name but the legislature while using language has not used specific language with precision and the second reason is that view has also been taken by the Delhi High Court that it can be in the name of wife. In that view of the matter, the contention raised by the assessee is required to be accepted with regard to Section 54B regarding investment in tubewell and others. In our considered opinion, for the purpose of carrying on the agricultural activity, tubewell and other expenses are for betterment of land and therefore, it will be considered a part of investment in the land and same is required to be accepted. - Decided in favour of assessee